{"id":50052,"date":"2017-12-21T07:55:38","date_gmt":"2017-12-21T15:55:38","guid":{"rendered":"http:\/\/69.46.6.243\/?p=50052"},"modified":"2017-12-21T07:55:38","modified_gmt":"2017-12-21T15:55:38","slug":"national-income-and-product-accounts-gross-domestic-product-third-quarter-2017-third-estimate-corporate-profits-third-quarter-2017-revised-estimate","status":"publish","type":"post","link":"https:\/\/new.thepinetree.net\/?p=50052","title":{"rendered":"National Income and Product Accounts Gross Domestic Product: Third Quarter 2017 (Third Estimate) Corporate Profits: Third Quarter 2017 (Revised Estimate)"},"content":{"rendered":"
Washington, DC...Real gross domestic product (GDP) increased at an annual rate of 3.2 percent in the third quarter of\r\n2017 (table 1), according to the \"third\" estimate released by the Bureau of Economic Analysis. In the\r\nsecond quarter, real GDP increased 3.1 percent.  The GDP estimate released today is based on more complete source data than were available for the\r\n\"second\" estimate issued last month.  In the second estimate, the increase in real GDP was 3.3 percent.\r\nWith this third estimate for the third quarter, personal consumption expenditures increased less than\r\npreviously estimated, but the general picture of economic growth remains the same.  \r\n\r\n\"\"<\/pre>\n
Real gross domestic income (GDI) increased 2.0 percent in the third quarter, compared with an increase\r\nof 2.3 percent in the second. The average of real GDP and real GDI, a supplemental measure of U.S.\r\neconomic activity that equally weights GDP and GDI, increased 2.6 percent in the third quarter,\r\ncompared with an increase of 2.7 percent in the second quarter (table 1).\r\n\r\nThe increase in real GDP in the third quarter reflected positive contributions from personal consumption\r\nexpenditures (PCE), private inventory investment, nonresidential fixed investment, exports, federal\r\ngovernment spending, and state and local government spending that were partly offset by a negative\r\ncontribution from residential fixed investment. Imports, which are a subtraction in the calculation of\r\nGDP, decreased.\r\n\r\nThe slight acceleration in real GDP in the third quarter primarily reflected an acceleration in private\r\ninventory investment and an upturn in state and local government spending that were partly offset by\r\ndecelerations in PCE, nonresidential fixed investment, and exports.\r\n\r\nCurrent-dollar GDP increased 5.3 percent, or $250.6 billion, in the third quarter to a level of $19,500.6\r\nbillion. In the second quarter, current-dollar GDP increased 4.1 percent, or $192.3 billion (table 1 and\r\ntable 3).\r\n\r\nThe price index for gross domestic purchases increased 1.7 percent in the third quarter, compared with\r\nan increase of 0.9 percent in the second quarter (table 4). The PCE price index increased 1.5 percent,\r\ncompared with an increase of 0.3 percent. Excluding food and energy prices, the PCE price index\r\nincreased 1.3 percent, compared with an increase of 0.9 percent (appendix table A).\r\n\r\n\r\nUpdates to GDP\r\n\r\nThe downward revision to the percent change in real GDP primarily reflected a downward revision to\r\nPCE that was partly offset by an upward revision to state and local government spending.\r\n\r\nFor more information, see the Technical Note<\/a>. A detailed \"Key Source Data and Assumptions<\/a>\" file is also\r\nposted for each release. For information on updates to GDP, see the \u201cAdditional Information\u201d section\r\nthat follows.\r\n\r\n\r\n                                           Advance Estimate     Second Estimate     Third Estimate\r\n                                                   (Percent change from preceding quarter)\r\nReal GDP                                         3.0                 3.3                3.2\r\nCurrent-dollar GDP                               5.2                 5.5                5.3\r\nReal GDI                                          \u2026                  2.5                2.0\r\nAverage of Real GDP and Real GDI                  \u2026                  2.9                2.6\r\nGross domestic purchases price index             1.8                 1.8                1.7\r\nPCE price index                                  1.5                 1.5                1.5\r\n\r\n\r\n\r\nCorporate Profits (table 12)\r\n\r\nProfits from current production (corporate profits with inventory valuation adjustment and capital\r\nconsumption adjustment) increased $90.2 billion in the third quarter, compared with an increase of\r\n$14.4 billion in the second quarter.\r\n\r\nProfits of domestic financial corporations increased $47.8 billion in the third quarter, in contrast to a\r\ndecrease of $33.8 billion in the second. Profits of domestic nonfinancial corporations increased $10.4\r\nbillion, compared with an increase of $59.1 billion. Rest-of-the-world  profits increased $32.0 billion, in\r\ncontrast to a decrease of $10.8 billion. In the third quarter, receipts increased $26.9 billion, and\r\npayments decreased $5.2 billion.\r\n\r\n\r\n\r\n                                       *          *          *\r\n\r\n                          Next release:  January 26, 2018 at 8:30 A.M. EST\r\n               Gross Domestic Product:  Fourth Quarter and Annual 2017 (Advance Estimate)\r\n\r\n                                       *          *          *\r\n\r\n\r\n\r\n                                        Release Dates in 2018\r\n\r\n\r\n      Estimate                   2017: IV and annual    2018: I           2018: II           2018: III\r\nGross Domestic Product\r\n Advance                         January 26             April 27          July 27            October 26\r\n Second                          February 28            May 30            August 29          November 28\r\n Third                           March 28               June 28           September 27       December 21\r\n\r\nCorporate Profits\r\n Preliminary                     \u2026                      May 30            August 29          November 28\r\n Revised                         March 28               June 28           September 27       December 21\r\n\r\n\r\n\r\n                                       Additional Information\r\n\r\nResources\r\n\r\nAdditional resources available at www.bea.gov<\/a>:\r\n\u2022\tStay informed about BEA developments by reading the BEA blog<\/a>, signing up for BEA\u2019s email\r\n        subscription service<\/a>, or following BEA on Twitter @BEA_News<\/a>.\r\n\u2022\tHistorical time series for these estimates can be accessed in BEA\u2019s Interactive Data Application<\/a>.\r\n\u2022\tAccess BEA data by registering for BEA\u2019s Data Application Programming Interface<\/a> (API).\r\n\u2022\tFor more on BEA\u2019s statistics, see our monthly online journal, the Survey of Current Business<\/a>.\r\n\u2022\tBEA's news release schedule<\/a>\r\n\u2022\tNIPA Handbook:  Concepts and Methods of the U.S. National Income and Product Accounts\r\n\r\nDefinitions\r\n\r\nGross domestic product (GDP) is the value of the goods and services produced by the nation\u2019s economy\r\nless the value of the goods and services used up in production. GDP is also equal to the sum of personal\r\nconsumption expenditures, gross private domestic investment, net exports of goods and services, and\r\ngovernment consumption expenditures and gross investment.\r\n\r\nGross domestic income (GDI) is the sum of incomes earned and costs incurred in the production of GDP.\r\nIn national economic accounting, GDP and GDI are conceptually equal. In practice, GDP and GDI differ\r\nbecause they are constructed using largely independent source data. Real GDI is calculated by deflating\r\ngross domestic income using the GDP price index as the deflator, and is therefore conceptually\r\nequivalent to real GDP.\r\n\r\nCurrent-dollar estimates are valued in the prices of the period when the transactions occurred\u2014that is,\r\nat \u201cmarket value.\u201d Also referred to as \u201cnominal estimates\u201d or as \u201ccurrent-price estimates.\u201d\r\nReal values are inflation-adjusted estimates\u2014that is, estimates that exclude the effects of price changes.\r\nThe gross domestic purchases price index measures the prices of final goods and services purchased by\r\nU.S. residents.\r\n\r\nThe personal consumption expenditure price index measures the prices paid for the goods and services\r\npurchased by, or on the behalf of, \u201cpersons.\u201d\r\n\r\nProfits from current production, referred to as corporate profits with inventory valuation adjustment\r\n(IVA) and capital consumption adjustment (CCAdj) in the NIPAs, is a measure of the net income of\r\ncorporations before deducting income taxes that is consistent with the value of goods and services\r\nmeasured in GDP. The IVA and CCAdj are adjustments that convert inventory withdrawals and depreciation\r\nof fixed assets reported on a tax-return, historical-cost basis to the current-cost economic measures\r\nused in the national income and product accounts. Profits for domestic industries reflect profits for\r\nall corporations located within the within the geographic borders of the United States. The rest-of-\r\nthe-world (ROW) component of profits is measured as the difference between profits received from ROW\r\nand profits paid to ROW.\r\n\r\n\r\nFor more definitions, see the Glossary: National Income and Product Accounts<\/a>.\r\n\r\n\r\nStatistical conventions\r\n\r\nAnnual rates. Quarterly values are expressed at seasonally-adjusted annual rates (SAAR), unless\r\notherwise specified. Dollar changes are calculated as the difference between these SAAR values. For\r\ndetail, see the FAQ \u201cWhy does BEA publish estimates at annual rates?<\/a>\u201d\r\n\r\nPercent changes in quarterly series are calculated from unrounded data and are displayed at annual\r\nrates, unless otherwise specified. For details, see the FAQ \u201cHow is average annual growth calculated?\u201d\r\n\r\nQuantities and prices. Quantities, or \u201creal\u201d volume measures, and prices are expressed as index\r\nnumbers with a specified reference year equal to 100 (currently 2009). Quantity and price indexes are\r\ncalculated using a Fisher-chained weighted formula that incorporates weights from two adjacent\r\nperiods (quarters for quarterly data and annuals for annual data). \u201cReal\u201d dollar series are calculated by\r\nmultiplying the published quantity index by the current dollar value in the reference year (2009) and\r\nthen dividing by 100. Percent changes calculated from real quantity indexes and chained-dollar levels\r\nare conceptually the same; any differences are due to rounding.\r\n\r\nChained-dollar values are not additive because the relative weights for a given period differ from those\r\nof the reference year. In tables that display chained-dollar values, a \u201cresidual\u201d line shows the difference\r\nbetween the sum of detailed chained-dollar series and its corresponding aggregate.\r\n\r\n\r\nUpdates to GDP\r\n\r\nBEA releases three vintages of the current quarterly estimate for GDP:  \"Advance\" estimates are\r\nreleased near the end of the first month following the end of the quarter and are based on source data\r\nthat are incomplete or subject to further revision by the source agency; \u201csecond\u201d and \u201cthird\u201d estimates\r\nare released near the end of the second and third months, respectively, and are based on more detailed\r\nand more comprehensive data as they become available.\r\n\r\nAnnual and comprehensive updates are typically released in late July. Annual updates generally cover at\r\nleast the 3 most recent calendar years (and their associated quarters) and incorporate newly available\r\nmajor annual source data as well as some changes in methods and definitions to improve the accounts.\r\nComprehensive (or benchmark) updates are carried out at about 5-year intervals and incorporate major\r\nperiodic source data, as well as major conceptual improvements.\r\nThe table below shows the average revisions to the quarterly percent changes in real GDP between\r\ndifferent estimate vintages, without regard to sign.\r\n\r\nVintage                               Average Revision Without Regard to Sign\r\n                                         (percentage points, annual rates)\r\nAdvance to second                                     0.5\r\nAdvance to third                                      0.6\r\nSecond to third                                       0.2\r\nAdvance to latest                                     1.3\r\nNote - Based on estimates from 1993 through 2016. For more information on GDP\r\nupdates, see Revision Information<\/a> on the BEA Web site.\r\n\r\nThe larger average revision from the advance to the latest estimate reflects the fact that periodic\r\ncomprehensive updates include major statistical and methodological improvements.\r\n\r\nUnlike GDP, an advance current quarterly estimate of GDI is not released because data on domestic\r\nprofits and on net interest of domestic industries are not available. For fourth quarter estimates, these\r\ndata are not available until the third estimate.<\/pre>\n","protected":false},"excerpt":{"rendered":"
Washington, DC…Real gross domestic product (GDP) increased at an annual rate of 3.2 percent in the third quarter of 2017 (table 1), according to the “third” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 3.1 percent. The GDP estimate released today is based on more complete source data […]<\/p>\n","protected":false},"author":1,"featured_media":50054,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_cbd_carousel_blocks":"[]","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,20,1],"tags":[],"class_list":["post-50052","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-featured","category-news","last_archivepost"],"jetpack_featured_media_url":"https:\/\/new.thepinetree.net\/wp-content\/uploads\/2017\/12\/gdp3q17_3rd_chart.jpg","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=\/wp\/v2\/posts\/50052","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=50052"}],"version-history":[{"count":0,"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=\/wp\/v2\/posts\/50052\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=\/wp\/v2\/media\/50054"}],"wp:attachment":[{"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50052"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50052"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50052"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}