Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 1.8 percent in the first quarter of 2013 (that is, from the fourth quarter to the first quarter), according to the "third" estimate released by the Bureau of Economic Analysis.
In the fourth quarter, real GDP increased 0.4 percent.
 |
| Bob DeMarco |
The GDP estimate released today is based on more complete source data than were available for
the "second" estimate issued last month. In the second estimate, real GDP increased 2.4 percent.
With
the third estimate for the first quarter, the increase in personal consumption expenditures (PCE) was less than previously estimated, and exports and imports are now estimated to have declined (for more
information, see "Revisions" on page 3).
The increase in real GDP in the first quarter primarily reflected positive contributions from PCE,
private inventory investment, and residential fixed investment that were partly offset by negative
contributions from federal government spending, state and local government spending, and exports.
Imports, which are a subtraction in the calculation of GDP, decreased.
Comprehensive Revision of the National Income and Product Accounts
BEA will release the results of the 14th comprehensive (or benchmark) revision of the national
income and product accounts (NIPAs) in conjunction with the second quarter 2013 "advance" estimate
on July 31, 2013. More information on the revision is available on BEA’s Web site at
www.bea.gov/gdp-revisions. An article in the March 2013 issue of the Survey of Current Business
discusses the upcoming changes in definitions and presentations, and an article in the May Survey
describes the changes in statistical methods. Revised NIPA table stubs and news release stubs are also
available on the Web site. An article in the September Survey will describe the estimates in detail.
Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise specified.
Quarter-to-quarter dollar changes are differences between these published estimates. Percent changes are calculated from unrounded data and are annualized. "Real" estimates are in chained (2005) dollars.
Price indexes are chain-type measures.
This news release is available on BEA’s Web site along with the Technical Note and Highlights related to this release. For information on revisions, see "Revisions to GDP, GDI, and Their Major Components".
The acceleration in real GDP in the first quarter primarily reflected an upturn in private
inventory investment, an acceleration in PCE, and smaller decreases in federal government spending and in exports that were partly offset by a deceleration in nonresidential fixed investment and a smaller
decrease in imports.
Motor vehicle output added 0.33 percentage point to the first-quarter change in real GDP after
adding 0.18 percentage point to the fourth-quarter change. Final sales of computers added 0.09
percentage point to the first-quarter change in real GDP after adding 0.10 percentage point to the fourth-quarter change.
The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 1.2 percent in the first quarter, unrevised from the second estimate; this index increased 1.6
percent in the fourth quarter. Excluding food and energy prices, the price index for gross domestic
purchases increased 1.5 percent in the first quarter, compared with an increase of 1.2 percent in the
fourth.
Real personal consumption expenditures increased 2.6 percent in the first quarter, compared with
an increase of 1.8 percent in the fourth. Durable goods increased 7.6 percent, compared with an increase
of 13.6 percent. Nondurable goods increased 2.8 percent, compared with an increase of 0.1 percent.
Services increased 1.7 percent, compared with an increase of 0.6 percent.
Real nonresidential fixed investment increased 0.4 percent in the first quarter, compared with an
increase of 13.2 percent in the fourth. Nonresidential structures decreased 8.3 percent, in contrast to an
increase of 16.7 percent. Equipment and software increased 4.1 percent, compared with an increase of
11.8 percent. Real residential fixed investment increased 14.0 percent, compared with an increase of
17.6 percent.
Real exports of goods and services decreased 1.1 percent in the first quarter, compared with a
decrease of 2.8 percent in the fourth. Real imports of goods and services decreased 0.4 percent,
compared with a decrease of 4.2 percent.
Real federal government consumption expenditures and gross investment decreased 8.7 percent
in the first quarter, compared with a decrease of 14.8 percent in the fourth. National defense decreased
12.0 percent, compared with a decrease of 22.1 percent. Nondefense decreased 2.1 percent, in contrast
to an increase of 1.7 percent. Real state and local government consumption expenditures and gross
investment decreased 2.1 percent, compared with a decrease of 1.5 percent.
The change in real private inventories added 0.57 percentage point to the first-quarter change in
real GDP, after subtracting 1.52 percentage points from the fourth-quarter change. Private businesses
increased inventories $36.7 billion in the first quarter, following increases of $13.3 billion in the fourth
quarter and $60.3 billion in the third.
Real final sales of domestic product -- GDP less change in private inventories -- increased 1.2
percent in the first quarter, compared with an increase of 1.9 percent in the fourth.
Gross domestic purchases
Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 1.8 percent in the first quarter; it was unchanged in the fourth.
Gross national product
Real gross national product -- the goods and services produced by the labor and property
supplied by U.S. residents -- increased 1.2 percent in the first quarter, compared with an increase of 0.9
percent in the fourth. GNP includes, and GDP excludes, net receipts of income from the rest of the
world, which decreased $17.7 billion in the first quarter after increasing $19.2 billion in the fourth; in
the first quarter, receipts decreased $16.3 billion, and payments increased $1.4 billion.
Current-dollar GDP
Current-dollar GDP -- the market value of the nation's output of goods and services -- increased
3.1 percent, or $120.0 billion, in the first quarter to a level of $15,984.1 billion. In the fourth quarter,
current-dollar GDP increased 1.3 percent, or $53.1 billion.
Gross domestic income
Real gross domestic income (GDI), which measures the output of the economy as the costs
incurred and the incomes earned in the production of GDP, increased 2.5 percent in the first quarter,
compared with an increase of 5.5 percent in the fourth. For a given quarter, the estimates of GDP and
GDI may differ for a variety of reasons, including the incorporation of largely independent source data.
However, over longer time spans, the estimates of GDP and GDI tend to follow similar patterns of
change.
Revisions
The downward revision to the percent change in real GDP primarily reflected downward
revisions to personal consumption expenditures, to exports, and to nonresidential fixed investment that
were partly offset by a downward revision to imports.
Advance Estimate Second Estimate Third Estimate
(Percent change from preceding quarter)
Real GDP...................................... 2.5 2.4 1.8
Current-dollar GDP............................ 3.7 3.6 3.1
Gross domestic purchases price index.......... 1.1 1.2 1.2
Corporate Profits
Profits from current production (corporate profits with inventory valuation and capital
consumption adjustments) decreased $28.0 billion in the first quarter, in contrast to an increase of $45.4
billion in the fourth quarter. Current-production cash flow (net cash flow with inventory valuation
adjustment) -- the internal funds available to corporations for investment -- increased $125.6 billion in
the first quarter, in contrast to a decrease of $89.8 billion in the fourth.
Taxes on corporate income decreased $10.5 billion in the first quarter, compared with a decrease
of $4.4 billion in the fourth. Profits after tax with inventory valuation and capital consumption
adjustments decreased $17.5 billion in the first quarter, in contrast to an increase of $49.8 billion in the
fourth. Dividends decreased $103.5 billion, in contrast to an increase of $124.3 billion. The large
fourth-quarter increase reflected accelerated and special dividends paid by corporations at the end of
2012 in anticipation of changes to individual income tax rates. Current-production undistributed profits
increased $85.8 billion, in contrast to a decrease of $74.3 billion.
Domestic profits of financial corporations decreased $3.4 billion in the first quarter, compared
with a decrease of $3.5 billion in the fourth. Domestic profits of nonfinancial corporations decreased
$5.0 billion in the first quarter, in contrast to an increase of $24.8 billion in the fourth. In the first
quarter, real gross value added of nonfinancial corporations increased, and profits per unit of real value added decreased. The decrease in unit profits reflected an increase in the unit nonlabor costs incurred by corporations that was partly offset by a decrease in unit labor costs; unit prices were unchanged.
The rest-of-the-world component of profits decreased $19.6 billion in the first quarter, in contrast
to an increase of $24.1 billion in the fourth. This measure is calculated as (1) receipts by U.S. residents
of earnings from their foreign affiliates plus dividends received by U.S. residents from unaffiliated
foreign corporations minus (2) payments by U.S. affiliates of earnings to their foreign parents plus
dividends paid by U.S. corporations to unaffiliated foreign residents. The first-quarter decrease was
accounted for by a larger decrease in receipts than in payments.
Profits before tax with inventory valuation adjustment is the best available measure of industry
profits because estimates of the capital consumption adjustment by industry do not exist. This measure
reflects depreciation-accounting practices used for federal income tax returns. According to this
measure, domestic profits of both financial and nonfinancial corporations decreased. The decrease in
nonfinancial corporations primarily reflected decreases in "other" nonfinancial and in manufacturing that
were partly offset by increases in information and in wholesale trade. Within manufacturing, the largest
decreases were in petroleum and coal products and in machinery.
Profits before tax decreased $34.7 billion in the first quarter, in contrast to an increase of $27.3
billion in the fourth. The before-tax measure of profits does not reflect, as does profits from current
production, the capital consumption and inventory valuation adjustments. These adjustments convert
depreciation of fixed assets and inventory withdrawals reported on a tax-return, historical-cost basis to
the current-cost measures used in the national income and product accounts. The capital consumption
adjustment increased $12.5 billion in the first quarter (from -$199.5 billion to -$187.0 billion), compared
with an increase of $0.5 billion in the fourth. The inventory valuation adjustment decreased $5.8 billion
(from -$9.2 billion to -$15.0 billion), in contrast to an increase of $17.6 billion.
The first-quarter changes in taxes on corporate income and in the capital consumption
adjustment mainly reflect the expiration of bonus depreciation claimed under the American Taxpayer
Relief Act of 2012. For detailed data, see the table "Net Effects of the Tax Acts of 2002, 2003, 2008,
2009, 2010, and 2012 on Selected Measures of Corporate Profits" at
www.bea.gov/national/xls/technote_tax_acts.xls. Profits from current production are not affected
because they do not depend on the depreciation-accounting practices used for federal income tax returns;
rather, they are based on depreciation of fixed assets valued at current cost using consistent depreciation
profiles based on used-asset prices. For more details on the effect of tax act provisions on the capital
consumption adjustment, see FAQ #999 on the BEA Web site, "Why does the capital consumption
adjustment for domestic business decline so much in the first quarter of 2012?"
http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm
National Income and Product Accounts
Gross Domestic Product, 1st quarter 2013 (third estimate);
Corporate Profits, 1st quarter 2013 (revised estimate)
* * *
BEA’s national, international, regional, and industry estimates; the Survey of Current Business;
and BEA news releases are available without charge on BEA’s Web site at www.bea.gov. By visiting
the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements.
Original content +Bob DeMarco , All American Investor
No comments:
Post a Comment