![\"\"](\"https:\/\/new.thepinetree.net\/wp-content\/uploads\/2018\/07\/gdp2q18_adv_chart.jpg\")
<\/p>\nWashington, DC…Real gross domestic product increased at an annual rate of 4.1 percent in the second quarter of 2018 (table 1), according to the “advance” estimate released by the Bureau of Economic Analysis. In the first
\nquarter, real GDP increased 2.2 percent (revised). The Bureau emphasized that the second-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 2). The “second” estimate for the second quarter, based on more complete data, will be released on August 29, 2018.<\/p>\n
<\/p>\n
The increase in real GDP in the second quarter reflected positive contributions from personal
\nconsumption expenditures (PCE), exports, nonresidential fixed investment, federal government
\nspending, and state and local government spending that were partly offset by negative contributions
\nfrom private inventory investment and residential fixed investment. Imports, which are a subtraction in
\nthe calculation of GDP, increased (table 2).<\/p>\n
Real GDP: Percent Change from Preceding Quarter<\/p>\n
BOX._______<\/p>\n
Comprehensive Update of the National Income and Product Accounts<\/p>\n
The estimates released today also reflect the results of the 15th comprehensive update of the National
\nIncome and Product Accounts (NIPAs). The updated estimates reflect previously announced improvements,
\nand include the introduction of new not seasonally adjusted estimates for GDP, GDI, and their major
\ncomponents. For more information, see the Technical Note. Revised NIPA table stubs, initial results, and
\nbackground materials are available on the BEA Web site.<\/p>\n
END BOX.______<\/p>\n
The acceleration in real GDP growth in the second quarter reflected accelerations in PCE and in exports,
\na smaller decrease in residential fixed investment, and accelerations in federal government spending
\nand in state and local spending. These movements were partly offset by a downturn in private inventory
\ninvestment and a deceleration in nonresidential fixed investment. Imports decelerated.<\/p>\n
Current-dollar GDP increased 7.4 percent, or $361.5 billion, in the second quarter to a level of $20.4
\ntrillion. In the first quarter, current-dollar GDP increased 4.3 percent, or $209.2 billion (table 1 and table
\n3A).<\/p>\n
The price index for gross domestic purchases increased 2.3 percent in the second quarter, compared
\nwith an increase of 2.5 percent in the first quarter (table 4). The PCE price index increased 1.8 percent,
\ncompared with an increase of 2.5 percent. Excluding food and energy prices, the PCE price index
\nincreased 2.0 percent, compared with an increase of 2.2 percent (table 4).<\/p>\n
Personal Income (table 8)<\/p>\n
Current-dollar personal income increased $183.7 billion in the second quarter, compared with an
\nincrease of $215.8 billion in the first quarter. Decelerations in wages and salaries, government social
\nbenefits, personal interest income, and nonfarm proprietors’ income were partly offset by accelerations
\nin personal dividend income and rental income, a deceleration in contributions for government social
\ninsurance (a subtraction in the calculation of personal income), and an upturn in farm proprietors\u2019
\nincome.<\/p>\n
Disposable personal income increased $167.5 billion, or 4.5 percent, in the second quarter, compared
\nwith an increase of $256.7 billion, or 7.0 percent, in the first quarter. Real disposable personal income
\nincreased 2.6 percent, compared with an increase of 4.4 percent.<\/p>\n
Personal saving was $1,051.1 billion in the second quarter, compared with $1094.1 billion in the first
\nquarter. The personal saving rate — personal saving as a percentage of disposable personal income —
\nwas 6.8 percent in the second quarter, compared with 7.2 percent in the first quarter.<\/p>\n
Source Data for the Advance Estimate<\/p>\n
Information on the source data and the key assumptions used for unavailable source data in the
\nadvance estimate is provided in a Technical Note that is posted with the news release on BEA\u2019s Web
\nsite. A detailed “Key Source Data and Assumptions” file is also posted for each release. For information
\non updates to GDP, see the “Additional Information” section that follows.<\/p>\n
Comprehensive Update of the National Income and Product Accounts<\/p>\n
Comprehensive updates of the National Income and Product Accounts (NIPAs), which are carried out
\nabout every five years, are an important part of BEA\u2019s regular process for improving and modernizing its
\naccounts to keep pace with the ever-changing U.S. economy. Updates incorporate newly available and
\nmore comprehensive source data, as well as improved estimation methodologies. The timespan for this
\nyear’s comprehensive update is 1929 through the first quarter 2018.<\/p>\n
With today’s release of these updated statistics, most NIPA tables are available on BEA’s Web site
\n(www.bea.gov). A complete schedule of the table release plan is also available on BEA\u2019s Web site. An
\narticle describing the results will be published in the September 2018 issue of BEA\u2019s monthly journal, the
\nSurvey of Current Business.<\/p>\n
Updates for the first quarter of 2018<\/p>\n
For the first quarter of 2018, real GDP is now estimated to have increased 2.2 percent (table 1); in the
\npreviously published estimates, first-quarter GDP was estimated to have increased 2.0 percent. The 0.2-
\npercentage point upward revision to the percent change in first-quarter real GDP primarily reflected
\nupward revisions to private inventory investment, nonresidential fixed investment, and federal
\ngovernment spending that were partly offset by downward revisions to PCE and residential fixed
\ninvestment. Imports were revised down.<\/p>\n
Real GDI is now estimated to have increased 3.9 percent in the first quarter (table 1); in the previously
\npublished estimates, first-quarter GDI was estimated to have increased 3.6 percent.<\/p>\n
First Quarter 2018<\/p>\n
Previous Estimate Revised
\n\t\t\t\t\t\t (Percent change from preceding quarter)
\nReal GDP 2.0 2.2
\nCurrent-dollar GDP 4.2 4.3
\nReal GDI 3.6 3.9
\nAverage of Real GDP and GDI 2.8 3.1
\nGross domestic purchases price index 2.7 2.5
\nPCE price index 2.5 2.5<\/p>\n
Summary of historical updates<\/p>\n
The picture of the economy presented in the updated estimates is very similar to the picture presented
\nin the previously published estimates.<\/p>\n
*\tFor 1929\u20132012, the average annual growth rate of real GDP was 3.2 percent, unrevised from the
\npreviously published estimates. For the more recent period, 2007\u20132017, the growth rate was
\n1.5 percent, 0.1 percentage point higher than in the previously published estimates.<\/p>\n
*\tFor 2012\u20132017, the average annual growth rate of real GDP was 2.2 percent, the same as in the
\npreviously published estimates. The percent change in real GDP was unrevised for 2012; revised
\nup 0.1 percentage point for 2013; revised down 0.1 percentage point for 2014; unrevised for
\n2015; revised up 0.1 percentage point for 2016; and revised down 0.1 percentage point for
\n2017.<\/p>\n
*\tFor 2012\u20132017, the average rate of change in the prices paid by U.S. residents, as measured by
\nthe gross domestic purchasers\u2019 price index, was 1.2 percent, 0.1 percentage point lower than in
\nthe previously published estimates.<\/p>\n
*\tFor the period of contraction from the fourth quarter of 2007 to the second quarter of 2009,
\nreal GDP decreased at an average annual rate of 2.7 percent; in the previously published
\nestimates, it decreased 2.8 percent.<\/p>\n
*\tFor the period of expansion from the second quarter of 2009 to the first quarter of 2018, real
\nGDP increased at an average annual rate of 2.2 percent, the same as previously published.<\/p>\n
Improvements incorporated in this comprehensive update<\/p>\n
Comprehensive updates encompass three major types of improvements:<\/p>\n
*\tChanges in definitions and in classifications that update the accounts to more accurately portray
\nthe evolving U.S. economy,<\/p>\n
*\tChanges in presentations that make the NIPA tables more informative, and<\/p>\n
*\tStatistical changes that introduce new and improved methodologies and that bring in newly
\navailable and revised source data (see box below).<\/p>\n
The improvements incorporated in the updated estimates were previewed in an article the April 2018
\nSurvey of Current Business. Additional information regarding improvements introduced as part of the
\n2018 Comprehensive Update, including background materials and presentational changes, is available
\non BEA’s Web site.<\/p>\n
Changes in definitions, classifications, and presentations<\/p>\n
The changes in definitions, in classifications, and in presentations introduced in this comprehensive
\nupdate include the following:<\/p>\n
*\tExpenditures for research and development (R&D) for software are reclassified from fixed
\ninvestment in own-account software to fixed investment in R&D. The new treatment resolves an
\ninconsistency between the NIPA measures and the primary source data underlying the
\nestimates of investment in R&D and allows users to better understand the effects of innovation
\nand intangible assets on the economy.<\/p>\n
*\tThe accuracy of measures of intangible investment is improved by incorporating the value of the
\nreturn to fixed capital into the estimates of own account investment in software and R&D,
\nconsistent with international guidelines.<\/p>\n
*\tPayments by the Federal Reserve banks to the U.S. government are reclassified from taxes on
\ncorporate income to dividend payments. This reclassification will improve the consistency of the
\nNIPAs with international guidelines and with the practices of other countries.<\/p>\n
*\tA new presentation of the estimates of federal and state and local government investment in
\nstructures for 1929\u20131996 is consistent with the estimates beginning in 1997.<\/p>\n
*\tUpdated tables present an improved, expanded presentation of taxes on production and
\nimports.<\/p>\n
*\tUpdated descriptions of selected series in personal consumption expenditures (PCE) are
\nintroduced to better reflect the rapidly changing digital economy.<\/p>\n
*\tThe reference year for the chain-type quantity and price indexes and for the chained-dollar
\nestimates is updated to 2012 from 2009.<\/p>\n
Statistical changes. Important statistical changes that introduce new and improved methodologies and
\nthat bring in newly available source data include the following:<\/p>\n
*\tBEA\u2019s 2012 benchmark input-output (I-O) accounts, which incorporate results of the 2012
\nEconomic Census and provide the most thorough and detailed information on the structure of
\nthe U.S. economy, are used to benchmark the expenditure components of GDP.<\/p>\n
*\tAdditional improvements to seasonal adjustment procedures are introduced, reflecting the
\nfindings of BEA\u2019s detailed review of the components of GDP and gross domestic income (GDI).
\nThe revised NIPA estimates reflect updates to seasonal factors for 2002 forward, as well as
\nupdates to a more limited set of seasonal factors prior to 2002. An article in the August Survey
\nof Current Business will describe BEA\u2019s latest research on seasonal adjustment in GDP and GDI.<\/p>\n
*\tBEA now provides quarterly estimates of GDP, GDI, and their major components that are not
\nseasonally adjusted. These statistics are available in new tables in \u201cSection 8: Not Seasonally
\nAdjusted Estimates\u201d of the NIPA tables presented in the interactive data application on BEA\u2019s
\nWeb site.<\/p>\n
*\tImproved price indexes for software, medical equipment, and communications equipment are
\nincorporated into BEA\u2019s estimates. The improved price indexes reflect recent research on rapid
\ninnovations and quality improvements of these products and provide a more accurate measure
\nof their contribution to growth and productivity.<\/p>\n
Footnote 1. See Moulton and Cowan, “Residual Seasonality in GDP and GDI: Findings and Next Steps”
\nin the July 2016 Survey.<\/p>\n
*\tMore accurate current-dollar estimates of private investment in information and
\ncommunications technology.<\/p>\n
*\tImproved methods for measuring the implicit output of savings institutions and credit unions
\nare introduced. The updated estimates are consistent with the methodology used for estimating
\nthe implicit output of commercial banks and provide a better measure of the activities of the
\nfinancial sector.<\/p>\n
*\tThe treatment of state and local government defined pension plans is now harmonized with the
\ntreatment of federal plans; both plans are now measured using a similar, consistent approach.<\/p>\n
Real GDP (Table 1A)<\/p>\n
The updated statistics largely reflect the incorporation of newly available and revised source data (see
\nthe box below) and improvements to existing methodologies.<\/p>\n
*\tFrom 2012 to 2017, real GDP increased at an average annual rate of 2.2 percent, the same as
\npreviously published. From the fourth quarter of 2012 to the first quarter of 2018, real GDP
\nincreased at an average annual rate of 2.3 percent, the same as in the previously published
\nestimates.<\/p>\n
Real GDP: Percent Change from Preceding Quarter<\/p>\n
o\tFor 2012, real GDP growth was unrevised. Upward revisions to nonresidential fixed
\ninvestment and inventory investment were offset by an upward revision to imports and
\nby a downward revision to state and local government spending.<\/p>\n
o\tFor 2013, real GDP growth was revised up 0.1 percentage point. Upward revisions to
\nnonresidential fixed investment, state and local government spending, inventory
\ninvestment, and federal government spending were partly offset by an upward revision
\nto imports.<\/p>\n
o\tFor 2014, real GDP growth was revised down 0.1 percentage point. An upward revision
\nto imports and downward revisions to inventory investment and state and local
\ngovernment spending were partly offset by upward revisions to nonresidential fixed
\ninvestment.<\/p>\n
o\tFor 2015, real GDP growth was unrevised. Upward revisions to state and local
\ngovernment spending, personal consumption expenditures (PCE), exports, and
\ninventory investment were offset by an upward revision to imports and by a downward
\nrevision to nonresidential fixed investment.<\/p>\n
o\tFor 2016, real GDP growth was revised up 0.1 percentage point. Upward revisions to
\nnonresidential fixed investment, state and local government spending, residential
\ninvestment, exports, and federal government spending were partly offset by a
\ndownward revision to inventory investment and by an upward revision to imports.<\/p>\n
o\tFor 2017, real GDP growth was revised down 0.1 percentage point. A downward
\nrevision to PCE, an upward revision to imports, and downward revisions to state and
\nlocal government spending and exports were partly offset by upward revisions to
\ninventory investment, nonresidential fixed investment, residential investment, and
\nfederal government spending.<\/p>\n
*\tFrom the first quarter of 2012 through the fourth quarter of 2017, the average revision (without
\nregard to sign) in the percent change in real GDP was 0.4 percentage point. The revisions did not
\nchange the direction of the change in real GDP (increase or decrease) for any of these quarters.<\/p>\n
*\tCurrent-dollar GDP was revised up for all years from 2012 to 2017: by $41.8 billion, or 0.3
\npercent, for 2012; $93.3 billion, or 0.6 percent, for 2013; $94.1 billion, or 0.5 percent, for 2014,
\n$98.6 billion, or 0.5 percent, for 2015, $82.7 billion, or 0.4 percent, for 2016, and $94.8 billion,
\nor 0.5 percent, for 2017.<\/p>\n
Gross domestic income (GDI) and the statistical discrepancy (Table 1A)<\/p>\n
*\tFrom 2012 to 2017, real GDI increased at an average annual rate of 2.0 percent, unrevised from
\nthe previous estimate. From the fourth quarter of 2012 to the fourth quarter of 2017, real GDI
\nincreased at an average annual rate of 2.1 percent; in the previously published estimates, real
\nGDI increased at an average annual rate of 2.0 percent.<\/p>\n
*\tThe statistical discrepancy as a percentage of GDP was revised from -1.3 percent to -1.5 percent
\nfor 2012; was revised from -0.8 percent to -1.0 percent for 2013; was revised from -1.3 percent
\nto -1.7 percent for 2014; was unrevised at -1.4 percent for 2015; was revised from -0.8 percent
\nto -0.7 percent for 2016; and was revised from -0.2 percent to -0.7 percent for 2017.<\/p>\n
*\tThe average of GDP and GDI is a supplemental measure of U.S. economic activity. In real, or
\ninflation-adjusted, terms this measure increased at an average annual rate of 2.1 percent from
\n2012 to 2017, the same as previously published.<\/p>\n
Price measures (Table 4)<\/p>\n
*\tGross domestic purchases – From the fourth quarter of 2012 to the fourth quarter of 2017, the
\naverage annual rate of increase in the price index for gross domestic purchases was 1.2 percent,
\n0.1 percentage point lower than the previously published estimates.<\/p>\n
*\tPersonal consumption expenditures – From the fourth quarter of 2012 to the fourth quarter of
\n2017, the average annual rate of increase in the price index for PCE was 1.2 percent, the same
\nas previously published. The increase in the \u201ccore\u201d PCE price index, which excludes food and
\nenergy, was 1.6 percent, 0.1 percentage point higher than previously published.<\/p>\n
Income and saving measures (Table 1A)<\/p>\n
*\tNational income was revised up $32.8 billion, or 0.2 percent, for 2012; was revised up $49.9
\nbillion, or 0.3 percent, for 2013; was revised up $101.4 billion, or 0.7 percent, for 2014; was
\nrevised up $43.4 billion, or 0.3 percent, for 2015; was revised up $6.9 billion, or less than 0.1
\npercent, for 2016; and was revised up $146.2 billion, or 0.9 percent, for 2017.<\/p>\n
o\tFor 2012, an upward revision to proprietors\u2019 income was partly offset by downward
\nrevisions to supplements to wages and salaries and to net interest.<\/p>\n
o\tFor 2013, upward revisions to proprietors\u2019 income and to taxes on production and
\nimports were partly offset by downward revisions to net interest, corporate profits, and
\nrental income.<\/p>\n
o\tFor 2014, upward revisions to proprietors\u2019 income and to taxes on production and
\nimports were partly offset by downward revisions to corporate profits and net interest.<\/p>\n
o\tFor 2015, upward revisions to proprietors\u2019 income and to taxes on production and
\nimports were partly offset by downward revisions to corporate profits and rental
\nincome.<\/p>\n
o\tFor 2016, upward revisions to proprietors\u2019 income and to taxes on production and
\nimports were partly offset by downward revisions to corporate profits, net interest,
\nsupplements to wages and salaries and rental income.<\/p>\n
Footnote 2. The statistical discrepancy is current dollar GDP less current dollar GDI. GDP measures
\nfinal expenditures — the sum of consumer spending, private investment, net exports, and government
\nspending. GDI measures the incomes earned in the production of GDP. In concept, GDP is equal to GDI.
\nIn practice, they differ because they are estimated using different source data and different methods.<\/p>\n
o\tFor 2017, upward revisions to proprietors\u2019 income, wages and salaries, and taxes on
\nproduction and imports were partly offset by downward revisions to corporate profits,
\nrental income, and net interest.<\/p>\n
*\tCorporate profits was revised down $0.8 billion, or less than 0.1 percent, for 2012; was revised
\ndown $22.2 billion, or 1.1 percent, for 2013; was revised down $21.7 billion, or 1.0 percent, for
\n2014; was revised down $60.2 billion, or 2.8 percent, for 2015; was revised down $38.5 billion,
\nor 1.9 percent, for 2016; and revised down $65.4 billion, or 3.0 percent, for 2017.<\/p>\n
*\tPersonal income was revised up $95.0 billion, or 0.7 percent, for 2012; was revised up $107.4
\nbillion, or 0.8 percent, for 2013; was revised up $173.6 billion, or 1.2 percent, for 2014; was
\nrevised up $166.6 billion, or 1.1 percent, for 2015; was revised up $196.4 billion, or 1.2 percent,
\nfor 2016; and was revised up $401.9 billion, or 2.4 percent, for 2017.<\/p>\n
*\tFrom 2012 to 2017, the average annual rate of growth of real disposable personal income was
\nrevised up 0.4 percentage point from 1.8 percent to 2.2 percent.<\/p>\n
*\tThe personal saving rate (personal saving as a percentage of disposable personal income) was
\nrevised up from 7.6 percent to 8.9 percent for 2012; was revised up from 5.0 percent to 6.4
\npercent for 2013; was revised up from 5.7 percent to 7.3 percent for 2014; was revised up from
\n6.1 percent to 7.6 percent for 2016; was revised up from 4.9 percent to 6.7 percent for 2016;
\nand was revised up from 3.4 percent to 6.7 percent for 2017.<\/p>\n
Real GDP: Percent Change from Preceding Quarter<\/p>\n
New and revised source data<\/p>\n
The updated statistics incorporated data from the following major federal statistical sources:<\/p>\n
Agency\/Data Years Covered and Vintage
\nCensus Bureau
\nAnnual capital expenditures survey 2015 (revised); 2016 (new)
\nAnnual wholesale trade survey 2008-2015 (revised); 2016 (new)
\nAnnual retail trade survey 2011-2015 (revised); 2016 (new)
\nAnnual survey of manufactures 2015 (revised); 2016 (new)
\nMonthly indicators of manufactures, merchant
\n wholesale trade, and retail trade 2008\u20132017 (revised)
\nService annual survey 2015 and 2016 (revised); 2017 (new)
\nAnnual surveys of state and local government finances Fiscal year (FY) 2015 (revised); FY 2016 (new)
\nMonthly survey of construction spending (value put in
\nplace) 2013\u20132017 (revised)
\nQuarterly services survey 2014\u20132017(revised)
\nCurrent population survey\/housing vacancy survey 2015 and 2016 (revised); 2017 (new)<\/p>\n
Office of Management and Budget Federal Budget Fiscal years 2017 and 2018<\/p>\n
Internal Revenue Service
\nTabulations of tax returns for corporations 2015 (revised)
\nTabulations of tax returns for sole proprietorships and
\npartnerships 2016 (new)<\/p>\n
BLS
\nQuarterly census of employment and wages 2016\u20132017 (revised)
\nSurvey of occupational employment 2017 (new)<\/p>\n
Department of Agriculture Farm statistics 2008\u20132017 (revised)<\/p>\n
BEA
\nInternational transactions accounts 1999-2017 (revised)<\/p>\n
Next release: August 29, 2018 at 8:30 A.M. EDT
\nGross Domestic Product: Second Quarter 2018 (Second Estimate)
\nCorporate Profits: Second Quarter 2018 (Preliminary Estimate)<\/p>\n
\t\t\t\t\t\t\tAdditional Information<\/p>\n
Resources<\/p>\n
Additional resources available at www.bea.gov:<\/p>\n
*\tStay informed about BEA developments by reading the BEA blog, signing up for BEA\u2019s email subscription service, or
\n following BEA on Twitter @BEA_News.
\n*\tHistorical time series for these estimates can be accessed in BEA\u2019s interactive data application.
\n*\tAccess BEA data by registering for BEA\u2019s data application programming interface (API).
\n*\tFor more on BEA\u2019s statistics, see our monthly online journal, the Survey of Current Business.
\n*\tBEA’s news release schedule
\n*\tNIPA 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 less the value of the
\ngoods and services used up in production. GDP is also equal to the sum of personal consumption expenditures, gross private
\ndomestic investment, net exports of goods and services, and government 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. In national economic
\naccounting, GDP and GDI are conceptually equal. In practice, GDP and GDI differ because they are constructed using largely
\nindependent source data. Real GDI is calculated by deflating gross domestic income using the GDP price index as the deflator,
\nand is therefore conceptually equivalent to real GDP.<\/p>\n
Current-dollar estimates are valued in the prices of the period when the transactions occurred\u2014that is, at “market value.” Also
\nreferred to as “nominal estimates” or as “current-price estimates.”<\/p>\n
Real values are inflation-adjusted estimates\u2014that is, estimates that exclude the effects of price changes.<\/p>\n
The gross domestic purchases price index measures the prices of final goods and services purchased by U.S. residents.<\/p>\n
The personal consumption expenditure price index measures the prices paid for the goods and services purchased by, or on the
\nbehalf of, “persons.”
\nPersonal income is the income received by, or on behalf of, all persons from all sources: from participation as laborers in
\nproduction, from owning a home or business, from the ownership of financial assets, and from government and business in the
\nform of transfers. t includes income from domestic sources as well as the rest of world. It does not include realized or
\nunrealized capital gains or losses.<\/p>\n
Disposable personal income is the income available to persons for spending or saving. It is equal to personal income less
\npersonal current taxes.<\/p>\n
Personal outlays is the sum of personal consumption expenditures, personal interest payments, and personal current transfer
\npayments.<\/p>\n
Personal saving is personal income less personal outlays and personal current taxes.<\/p>\n
The personal saving rate is personal saving as a percentage of disposable personal income.<\/p>\n
Profits from current production, referred to as corporate profits with inventory valuation adjustment (IVA) and capital
\nconsumption adjustment (CCAdj) in the National Income and Product Accounts (NIPAs), is a measure of the net income of
\ncorporations before deducting income taxes that is consistent with the value of goods and services measured in GDP. The IVA
\nand CCAdj are adjustments that convert inventory withdrawals and depreciation of fixed assets reported on a tax-return,
\nhistorical-cost basis to the current-cost economic measures used in the national income and product accounts. Profits for
\ndomestic industries reflect profits for all corporations located 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 and profits paid to
\nROW.<\/p>\n
For more definitions, see the Glossary: National Income and Product Accounts.<\/p>\n
Statistical conventions<\/p>\n
Annual-vs-quarterly rates. Quarterly seasonally adjusted values are expressed at annual rates, unless otherwise specified. This
\nconvention is used for BEA\u2019s featured, seasonally adjusted measures to facilitate comparisons with related and historical data.
\nFor details, see the FAQ \u201cWhy does BEA publish estimates at annual rates?\u201d Quarterly not seasonally adjusted values are
\nexpressed only at quarterly rates.
\nPercent changes. Percent changes in quarterly seasonally adjusted series are displayed at annual rates, unless otherwise
\nspecified. For details, see the FAQ \u201cHow is average annual growth calculated?\u201d Percent changes in quarterly not seasonally
\nadjusted values are calculated from the same quarter one year ago. All published percent changes are calculated from
\nunrounded data.<\/p>\n
Calendar years and quarters. Unless noted otherwise, annual and quarterly data are presented on a calendar basis.<\/p>\n
Quantities and prices. Quantities, or “real” volume measures, and prices are expressed as index numbers with a specified
\nreference year equal to 100 (currently 2012). Quantity and price indexes are calculated using a Fisher-chained weighted
\nformula that incorporates weights from two adjacent periods (quarters for quarterly data and annuals for annual data). For
\ndetails on the calculation of quantity and price indexes, see Chapter 4: Estimating Methods in the NIPA Handbook.<\/p>\n
Chained-dollar values are calculated by multiplying the quantity index by the current dollar value in the reference year (2012)
\nand then dividing by 100. Percent changes calculated from real quantity indexes and chained-dollar levels are conceptually the
\nsame; any differences are due to rounding. Chained-dollar values are not additive because the relative weights for a given
\nperiod differ from those of the reference year. In tables that display chained-dollar values, a “residual” line shows the
\ndifference between 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 released near the end of the
\nfirst month following the end of the quarter and are based on source data that are incomplete or subject to further revision by
\nthe source agency; “second” and “third” estimates are released near the end of the second and third months, respectively, and
\nare based on more detailed and more comprehensive data as they become available.<\/p>\n
Annual and comprehensive updates are typically released in late July. Annual updates generally cover at least the 5 most recent
\ncalendar years (and their associated quarters) and incorporate newly available major annual source data as well as some
\nchanges in methods and definitions to improve the accounts. Comprehensive (or benchmark) updates are carried out at about
\n5-year intervals and incorporate major periodic source data, as well as major conceptual improvements.<\/p>\n
The table below shows the average revisions to the quarterly percent changes in real GDP between different estimate vintages,
\nwithout 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 updates, 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 comprehensive updates
\ninclude major statistical and methodological improvements.<\/p>\n
Unlike GDP, an advance current quarterly estimate of GDI is not released because data on domestic profits and on net interest
\nof domestic industries are not available. For fourth quarter estimates, these data are not available until the third estimate.<\/p>\n","protected":false},"excerpt":{"rendered":"
Washington, DC…Real gross domestic product increased at an annual rate of 4.1 percent in the second quarter of 2018 (table 1), according to the “advance” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 2.2 percent (revised). The Bureau emphasized that the second-quarter advance estimate released today is based […]<\/p>\n","protected":false},"author":1,"featured_media":64292,"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-64291","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\/07\/gdp2q18_adv_chart.jpg","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=\/wp\/v2\/posts\/64291","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=64291"}],"version-history":[{"count":0,"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=\/wp\/v2\/posts\/64291\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=\/wp\/v2\/media\/64292"}],"wp:attachment":[{"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=64291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=64291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.thepinetree.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=64291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}