![\"\"](\"https:\/\/new.thepinetree.net\/wp-content\/uploads\/2018\/05\/gdp1q18_2nd_chart.png\")
<\/a><\/p>\nThe GDP estimate released today is based on more complete source data than were available for the
\n“advance” estimate issued last month. In the advance estimate, the increase in real GDP was 2.3
\npercent. With this second estimate for the first quarter, the general picture of economic growth remains
\nthe same; downward revisions to private inventory investment, residential fixed investment, and
\nexports were partly offset by an upward revision to nonresidential fixed investment (see “Updates to
\nGDP” on page 2).<\/p>\n
Real gross domestic income (GDI) increased 2.8 percent in the first quarter, compared with an increase
\nof 1.0 percent (revised) in the fourth quarter. The average of real GDP and real GDI, a supplemental
\nmeasure of U.S. economic activity that equally weights GDP and GDI, increased 2.5 percent in the first
\nquarter, compared with an increase of 2.0 percent in the fourth quarter (table 1).<\/p>\n
The increase in real GDP in the first quarter reflected positive contributions from nonresidential fixed
\ninvestment, personal consumption expenditures (PCE), exports, private inventory investment, federal
\ngovernment spending, and state and local government spending that were partly offset by a negative
\ncontribution from residential fixed investment. Imports, which are a subtraction in the calculation of
\nGDP, increased (table 2).<\/p>\n
The deceleration in real GDP growth in the first quarter reflected decelerations in PCE, exports, state
\nand local government spending, and federal government spending and a downturn in residential fixed
\ninvestment. These movements were partly offset by an upturn in private inventory investment and a
\nlarger increase in nonresidential fixed investment. Imports, which are a subtraction in the calculation of
\nGDP, decelerated.<\/p>\n
Current-dollar GDP increased 4.2 percent, or $202.7 billion, in the first quarter to a level of $19.96
\ntrillion. In the fourth quarter, current-dollar GDP increased 5.3 percent, or $253.5 billion (table 1 and
\ntable 3).<\/p>\n
The price index for gross domestic purchases increased 2.7 percent in the first quarter, compared with
\nan increase of 2.5 percent in the fourth quarter (table 4). The PCE price index increased 2.6 percent,
\ncompared with an increase of 2.7 percent. Excluding food and energy prices, the PCE price index
\nincreased 2.3 percent, compared with an increase of 1.9 percent (appendix table A).<\/p>\n
Updates to GDP<\/p>\n
The percent change in real GDP was revised down 0.1 percentage point from the advance estimate,
\nprimarily reflecting downward revisions to private inventory investment, residential fixed investment,
\nand exports that were partly offset by an upward revision to nonresidential fixed investment. For more
\ninformation, see the Technical Note. A detailed “Key Source Data and Assumptions” file is also posted
\nfor each release. For information on updates to GDP, see the “Additional Information” section that
\nfollows.<\/p>\n
Advance Estimate Second Estimate<\/p>\n
(Percent change from preceding quarter)
\nReal GDP 2.3 2.2
\nCurrent-dollar GDP 4.3 4.2
\nReal GDI \u2026 2.8
\nAverage of Real GDP and Real GDI \u2026 2.5
\nGross domestic purchases price index 2.8 2.7
\nPCE price index 2.7 2.6<\/p>\n
For the fourth quarter of 2017, the percent change in real GDI was revised from 0.9 percent to 1.0
\npercent based on newly available fourth-quarter wages and salaries data from the BLS Quarterly Census
\nof Employment and Wages program.<\/p>\n
Corporate Profits (table 12)<\/p>\n
Profits from current production (corporate profits with inventory valuation adjustment and capital
\nconsumption adjustment) decreased $12.4 billion in the first quarter, compared with a decrease of $1.1
\nbillion in the fourth quarter.<\/p>\n
Profits of domestic financial corporations increased $2.2 billion in the first quarter, in contrast to a
\ndecrease of $14.6 billion in the fourth quarter. Profits of domestic nonfinancial corporations decreased
\n$19.0 billion, in contrast to an increase of $19.4 billion. Rest-of-the-world profits increased $4.4 billion,
\nin contrast to a decrease of $5.9 billion. In the first quarter, receipts increased $20.0 billion, and
\npayments increased $15.7 billion.<\/p>\n
The 2017 Tax Cuts and Jobs Act includes several provisions that impact the business income statistics in
\nthe national income and product accounts (NIPAs). The provisions do not directly impact corporate
\nprofits from current production or GDI but do impact taxes on corporate income and net dividends in
\nthe first quarter of 2018. For more information, see the Technical Note.<\/p>\n
Box____
\nUpcoming Comprehensive Update of the National Income and Product Accounts<\/p>\n
BEA will release the results of the 15th comprehensive (or benchmark) update of the national
\nincome and product accounts (NIPAs) in conjunction with the second quarter 2018 “advance”
\nestimate on July 27, 2018. For more information, see the Technical Note. Details on the planned
\nstatistical, definitional, and presentational changes are available in the April Survey of Current
\nBusiness article “Preview of the 2018 Comprehensive Update of the National Income and Product
\nAccounts.” An article in the September Survey will describe the estimates in detail. Revised NIPA
\ntable stubs and news release stubs will be available in June.<\/p>\n
Box ends___<\/p>\n
Next release: June 28, 2018 at 8:30 A.M. EDT
\nGross Domestic Product: First Quarter 2018 (Third Estimate)
\nCorporate Profits: First Quarter 2018 (Revised Estimate)<\/p>\n
* * *<\/p>\n
Additional Information<\/p>\n
Resources<\/p>\n
Additional resources available at www.bea.gov:
\n\u2022 Stay informed about BEA developments by reading the BEA blog, signing up for BEA\u2019s email
\nsubscription service, or following BEA on Twitter @BEA_News.
\n\u2022 Historical time series for these estimates can be accessed in BEA\u2019s Interactive Data Application.
\n\u2022 Access BEA data by registering for BEA\u2019s Data Application Programming Interface (API).
\n\u2022 For more on BEA\u2019s statistics, see our monthly online journal, the Survey of Current Business.
\n\u2022 BEA’s news release schedule
\n\u2022 NIPA Handbook: Concepts and Methods of the U.S. National Income and Product Accounts<\/p>\n
Definitions<\/p>\n
Gross domestic product (GDP) is the value of the goods and services produced by the nation\u2019s economy
\nless the value of the goods and services used up in production. GDP is also equal to the sum of personal
\nconsumption expenditures, gross private domestic investment, net exports of goods and services, and
\ngovernment consumption expenditures and gross investment.<\/p>\n
Gross domestic income (GDI) is the sum of incomes earned and costs incurred in the production of GDP.
\nIn national economic accounting, GDP and GDI are conceptually equal. In practice, GDP and GDI differ
\nbecause they are constructed using largely independent source data. Real GDI is calculated by deflating
\ngross domestic income using the GDP price index as the deflator, and is therefore conceptually
\nequivalent to real GDP.<\/p>\n
Current-dollar estimates are valued in the prices of the period when the transactions occurred\u2014that is,
\nat \u201cmarket value.\u201d Also referred to as \u201cnominal estimates\u201d or as \u201ccurrent-price estimates.\u201d
\nReal values are inflation-adjusted estimates\u2014that is, estimates that exclude the effects of price changes.
\nThe gross domestic purchases price index measures the prices of final goods and services purchased by
\nU.S. residents.<\/p>\n
The personal consumption expenditure price index measures the prices paid for the goods and services
\npurchased by, or on the behalf of, \u201cpersons.\u201d<\/p>\n
Profits from current production, referred to as corporate profits with inventory valuation adjustment
\n(IVA) and capital consumption adjustment (CCAdj) in the NIPAs, is a measure of the net income of
\ncorporations before deducting income taxes that is consistent with the value of goods and services
\nmeasured in GDP. The IVA and CCAdj are adjustments that convert inventory withdrawals and depreciation
\nof fixed assets reported on a tax-return, historical-cost basis to the current-cost economic measures
\nused in the national income and product accounts. Profits for domestic industries reflect profits for
\nall corporations located within the within the geographic borders of the United States. The rest-of-
\nthe-world (ROW) component of profits is measured as the difference between profits received from ROW
\nand profits paid to ROW.<\/p>\n
For more definitions, see the Glossary: National Income and Product Accounts.<\/p>\n
Statistical conventions<\/p>\n
Annual rates. Quarterly values are expressed at seasonally-adjusted annual rates (SAAR), unless
\notherwise specified. Dollar changes are calculated as the difference between these SAAR values. For
\ndetail, see the FAQ \u201cWhy does BEA publish estimates at annual rates?\u201d<\/p>\n
Percent changes in quarterly series are calculated from unrounded data and are displayed at annual
\nrates, unless otherwise specified. For details, see the FAQ \u201cHow is average annual growth calculated?\u201d<\/p>\n
Quantities and prices. Quantities, or \u201creal\u201d volume measures, and prices are expressed as index
\nnumbers with a specified reference year equal to 100 (currently 2009). Quantity and price indexes are
\ncalculated using a Fisher-chained weighted formula that incorporates weights from two adjacent
\nperiods (quarters for quarterly data and annuals for annual data). \u201cReal\u201d dollar series are calculated by
\nmultiplying the published quantity index by the current dollar value in the reference year (2009) and
\nthen dividing by 100. Percent changes calculated from real quantity indexes and chained-dollar levels
\nare conceptually the same; any differences are due to rounding.<\/p>\n
Chained-dollar values are not additive because the relative weights for a given period differ from those
\nof the reference year. In tables that display chained-dollar values, a \u201cresidual\u201d line shows the difference
\nbetween the sum of detailed chained-dollar series and its corresponding aggregate.<\/p>\n
Updates to GDP<\/p>\n
BEA releases three vintages of the current quarterly estimate for GDP: “Advance” estimates are
\nreleased near the end of the first month following the end of the quarter and are based on source data
\nthat are incomplete or subject to further revision by the source agency; \u201csecond\u201d and \u201cthird\u201d estimates
\nare released near the end of the second and third months, respectively, and are based on more detailed
\nand more comprehensive data as they become available.<\/p>\n
Annual and comprehensive updates are typically released in late July. Annual updates generally cover at
\nleast the 3 most recent calendar years (and their associated quarters) and incorporate newly available
\nmajor annual source data as well as some changes in methods and definitions to improve the accounts.
\nComprehensive (or benchmark) updates are carried out at about 5-year intervals and incorporate major
\nperiodic source data, as well as major conceptual improvements.
\nThe table below shows the average revisions to the quarterly percent changes in real GDP between
\ndifferent estimate vintages, without regard to sign.<\/p>\n
Vintage Average Revision Without Regard to Sign
\n(percentage points, annual rates)
\nAdvance to second 0.5
\nAdvance to third 0.6
\nSecond to third 0.2
\nAdvance to latest 1.3
\nNote – Based on estimates from 1993 through 2016. For more information on GDP
\nupdates, see Revision Information on the BEA Web site.<\/p>\n
The larger average revision from the advance to the latest estimate reflects the fact that periodic
\ncomprehensive updates include major statistical and methodological improvements.<\/p>\n
Unlike GDP, an advance current quarterly estimate of GDI is not released because data on domestic
\nprofits and on net interest of domestic industries are not available. For fourth quarter estimates, these
\ndata are not available until the third estimate.<\/p>\n","protected":false},"excerpt":{"rendered":"
Washington, DC…National Income and Product Accounts Gross Domestic Product: First Quarter 2018 (Second Estimate) Corporate Profits: First Quarter 2018 (Preliminary Estimate) Real gross domestic product (GDP) increased at an annual rate of 2.2 percent in the first quarter of 2018 (table 1), according to the “second” estimate released by the Bureau of Economic Analysis. In […]<\/p>\n","protected":false},"author":1,"featured_media":60263,"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":[20,149,1],"tags":[],"class_list":["post-60262","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-financial","category-news","last_archivepost"],"jetpack_featured_media_url":"https:\/\/new.thepinetree.net\/wp-content\/uploads\/2018\/05\/gdp1q18_2nd_chart.png","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=\/wp\/v2\/posts\/60262","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=60262"}],"version-history":[{"count":0,"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=\/wp\/v2\/posts\/60262\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=\/wp\/v2\/media\/60263"}],"wp:attachment":[{"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=60262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=60262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=60262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}