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<\/p>\nWashington, DC…Real gross domestic product (GDP) increased at an annual rate of 2.6 percent in the fourth quarter of 2017 (table 1), according to the “advance” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 3.2 percent. The Bureau emphasized that the fourth-quarter advance estimate released today is based on source data that are incomplete or subject to further revision by the source agency (see “Source Data for the Advance Estimate” on page 3). The “second” estimate for the fourth quarter, based on more complete data, will be released on February 28, 2018.<\/p>\n
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The increase in real GDP in the fourth quarter reflected positive contributions from personal\r\nconsumption expenditures (PCE), nonresidential fixed investment, exports, residential fixed investment,\r\nstate and local government spending, and federal government spending that were partly offset by a\r\nnegative contribution from private inventory investment. Imports, which are a subtraction in the\r\ncalculation of GDP, increased (table 2).\r\n\r\nThe deceleration in real GDP growth in the fourth quarter reflected a downturn in private inventory\r\ninvestment that was partly offset by accelerations in PCE, exports, nonresidential fixed investment, state\r\nand local government spending, and federal government spending, and an upturn in residential fixed\r\ninvestment. Imports, which are a subtraction in the calculation of GDP, turned up.\r\n\r\nCurrent-dollar GDP increased 5.0 percent, or $238.3 billion, in the fourth quarter to a level of $19,738.9\r\nbillion. In the third quarter, current-dollar GDP increased 5.3 percent, or $250.6 billion (table 1 and table\r\n3).\r\n\r\nThe price index for gross domestic purchases increased 2.5 percent in the fourth quarter, compared\r\nwith an increase of 1.7 percent in the third quarter (table 4). The PCE price index increased 2.8 percent,\r\ncompared with an increase of 1.5 percent. Excluding food and energy prices, the PCE price index\r\nincreased 1.9 percent, compared with an increase of 1.3 percent (appendix table A).\r\n\r\n\r\nPersonal Income (table 10)\r\n\r\nCurrent-dollar personal income increased $178.9 billion in the fourth quarter, compared with an\r\nincrease of $112.3 billion in the third. The acceleration in personal income primarily reflected an upturn\r\nin personal interest income and an acceleration in nonfarm proprietors\u2019 income.\r\n\r\nDisposable personal income increased $139.0 billion, or 3.9 percent, in the fourth quarter, compared\r\nwith an increase of $73.8 billion, or 2.1 percent, in the third. Real disposable personal income increased\r\n1.1 percent, compared with an increase of 0.5 percent.\r\n\r\nPersonal saving was $384.4 billion in the fourth quarter, compared with $478.3 billion in the third. The\r\npersonal saving rate -- personal saving as a percentage of disposable personal income -- was 2.6 percent\r\nin the fourth quarter, compared with 3.3 percent in the third.\r\n\r\n\r\n2017 GDP\r\n\r\nReal GDP increased 2.3 percent in 2017 (that is, from the 2016 annual level to the 2017 annual level),\r\ncompared with an increase of 1.5 percent in 2016 (table 1).\r\n\r\nThe increase in real GDP in 2017 primarily reflected positive contributions from PCE, nonresidential fixed\r\ninvestment, and exports. Imports, which are a subtraction in the calculation of GDP, increased (table 2).\r\n\r\nThe acceleration in real GDP from 2016 to 2017 reflected upturns in nonresidential fixed investment and\r\nin exports and a smaller decrease in private inventory investment. These movements were partly offset\r\nby decelerations in residential fixed investment and in state and local government spending. Imports,\r\nwhich are a subtraction in the calculation of GDP, accelerated.\r\n\r\nCurrent-dollar GDP increased 4.1 percent, or $762.3 billion, in 2017 to a level of $19,386.8 billion,\r\ncompared with an increase of 2.8 percent, or $503.8 billion, in 2016 (table 1 and table 3).\r\n\r\nThe price index for gross domestic purchases increased 1.8 percent in 2017, compared with an increase\r\nof 1.0 percent in 2016 (table 4). The PCE price index increased 1.7 percent, compared with an increase\r\nof 1.2 percent. Excluding food and energy prices, the PCE price index increased 1.5 percent, compared\r\nwith an increase of 1.8 percent (appendix table A).\r\n\r\nDuring 2017 (measured from the fourth quarter of 2016 to the fourth quarter of 2017), real GDP\r\nincreased 2.5 percent, compared with an increase of 1.8 percent during 2016. The price index for gross\r\ndomestic purchases increased 1.9 percent during 2017, compared with an increase of 1.4 percent during\r\n2016 (table 7).\r\n\r\n\r\nSource Data for the Advance Estimate\r\n\r\nInformation on the assumptions used for unavailable source data in the advance estimate is provided in\r\na Technical Note<\/a> that is posted with the news release on BEA\u2019s Web site. A detailed \"Key Source Data\r\nand Assumptions<\/a>\" file is also posted for each release. For information on updates to GDP, see the\r\n\"Additional Information\" section that follows.\r\n\r\n * * *\r\n Next release: February 28, 2018 at 8:30 A.M. EST\r\n Gross Domestic Product: Fourth Quarter 2017 (Second Estimate)\r\n * * *\r\n\r\nAdditional Information\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<\/a>: 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\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\nPersonal income is the income received by, or on behalf of, all persons from all sources: from\r\nparticipation as laborers in production, from owning a home or business, from the ownership of\r\nfinancial assets, and from government and business in the form of transfers. It includes income from\r\ndomestic sources as well as the rest of world. It does not include realized or unrealized capital gains or\r\nlosses.\r\n\r\nDisposable personal income is the income available to persons for spending or saving. It is equal to\r\npersonal income less personal current taxes.\r\n\r\nPersonal outlays is the sum of personal consumption expenditures, personal interest payments, and\r\npersonal current transfer payments.\r\n\r\nPersonal saving is personal income less personal outlays and personal current taxes.\r\nThe personal saving rate is personal saving as a percentage of disposable personal income. (For a\r\ncomparison of personal saving in BEA's national income and product accounts (NIPAs) with personal\r\nsaving in the Federal Reserve Board's financial accounts of the United States, go to\r\nwww.bea.gov\/national\/nipaweb\/nipa-frb.asp.\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?<\/a>\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 2.6 percent in the fourth quarter of 2017 (table 1), according to the “advance” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 3.2 percent. The Bureau emphasized that the fourth-quarter advance estimate released today is based […]<\/p>\n","protected":false},"author":1,"featured_media":51820,"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":[3,20,5,1],"tags":[],"class_list":["post-51818","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-featured","category-government","category-news","last_archivepost"],"jetpack_featured_media_url":"https:\/\/new.thepinetree.net\/wp-content\/uploads\/2018\/01\/bealogo.jpg","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=\/wp\/v2\/posts\/51818","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=51818"}],"version-history":[{"count":0,"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=\/wp\/v2\/posts\/51818\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=\/wp\/v2\/media\/51820"}],"wp:attachment":[{"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}