Posted on 12/22/2016 6:03:47 AM PST by expat_panama
Real gross domestic product increased at an annual rate of 3.5 percent in the third quarter of 2016 (table 1), according to the "third" estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 1.4 percent.
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, the increase in real GDP was 3.2 percent. With this third estimate for the third quarter, nonresidential fixed investment, personal consumption expenditures (PCE), and state and local government spending increased more than previously estimated, but the general picture of economic growth remains the same (see "Updates to GDP" on page 2).
Real gross domestic income (GDI) increased 4.8 percent in the third quarter, compared with an increase of 0.7 percent in the second. The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 4.1 percent in the third quarter, compared with an increase of 1.1 percent in the second (table 1).
The increase in real GDP in the third quarter primarily reflected positive contributions from PCE, exports, private inventory investment, nonresidential fixed investment, and federal government spending that were partly offset by negative contributions from residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased (table 2).
The acceleration in real GDP in the third quarter primarily reflected an upturn in private inventory investment, an acceleration in exports, a smaller decrease in state and local government spending, an upturn in federal government spending, and a smaller decrease in residential investment, that were partly offset by a smaller increase in PCE and an acceleration in imports.
Current-dollar GDP increased 5.0 percent, or $225.2 billion, in the third quarter to a level of $18,675.3 billion. In the second quarter, current dollar GDP increased 3.7 percent, or $168.5 billion (table 1 and table 3).
The price index for gross domestic purchases increased 1.5 percent in the third quarter, compared with an increase of 2.1 percent in the second quarter (table 4). The PCE price index increased 1.5 percent, compared with an increase of 2.0 percent. Excluding food and energy prices, the PCE price index increased 1.7 percent, compared with an increase of 1.8 percent (appendix table A).
Updates to GDP
The upward revision to the percent change in real GDP reflected upward revisions to nonresidential fixed investment, PCE, and state and local government spending. For more information, see the Technical Note. For information on updates to GDP, see the "Additional Information" section that follows.
Advance Estimate Second Estimate Third Estimate
(Percent change from preceding quarter) Real GDP 2.9 3.2 3.5 Current-dollar GDP 4.4 4.6 5.0 Real GDI … 5.2 4.8 Average of Real GDP and Real GDI … 4.2 4.1 Gross domestic purchases price index 1.6 1.5 1.5 PCE price index 1.4 1.4 1.5
Corporate Profits (table 12)
Profits from current production (corporate profits with inventory valuation adjustment and capital consumption adjustment) increased $117.8 billion in the third quarter, in contrast to a decrease of $12.5 billion in the second quarter.
Profits of domestic financial corporations increased $50.1 billion in the third quarter, compared with an increase of $5.6 billion in the second. Profits of domestic nonfinancial corporations increased $66.4 billion, in contrast to a decrease of $56.1 billion. The rest-of-the-world component of profits increased $1.3 billion, compared with an increase of $38.0 billion. This measure is calculated as the difference between receipts from the rest of the world and payments to the rest of the world. In the third quarter, receipts decreased $1.3 billion, and payments decreased $2.6 billion.
But we knew that.
Are the economists in this country really that indoctrinated? How does federal spending increase GDP? Is the federal govt. now considered a profit center?
it actually grew at fifteen hundred percent! and it will go so much lower under Trump. I hate these m************ with a passion most couldn’t understand.
It flows through my veins.
There is about an eight month lag between government action and conditions on the street.
Just more MSM Kook Kibble for Kommies, so they can shriek Obama did it at the top of their lungs for the next eight years.
Trump effect!!!
“HOPE”
Interesting take, especially the soybeans bit.
We’re the soybean kings of the world!
We need to build a fense around the swamp, hyper-chlorinate it, drain it and napalm it.
Maybe nuke it from orbit to be sure.
It appears from the graph that there is always a spike in Q3. So this is not some new trend although reported that way as a single point is not a trend. It appears to be normal for some reason.
Govt spending adds to GDP as if the IRS buys a box of ball point pens, somebody made/sold them. As long as Govt did not print (or borrow) money to pay for them.
V = GDP / M
V = Velocity of Money (# times it changes hands)
GDP = Gross Domestic Product
M = Money Supply
Having said that, there are a lot of anti Trump agents in international banking and I don't trust the Federal Reserve either.
http://www.reuters.com/article/us-usa-economy-idUSKCN12S0E5
...a surge in soybean exports and a rebound in inventory investment offset a slowdown in consumer spending...
...But with exports and inventories accounting for almost half of the increase in output, economists warned the growth spurt would likely be temporary...
If the American business community comes together, the rest of the world will have to go to the back seat.
Hummm...seems a bit to soon for a Trump rally, unless it was FReeper driven by all of those FR posters that were sure Trump would win! In any case if the .gov lies are consistent then this is a significant gain.
Don’t trust? Those are soft words! They are the enemy.
Yellen, to me, is just as sinister as the worst of them.
I don’t care if it takes two years to tear down the country and rebuild it.
This fake -50 percent (exaggerating) interest rate crap has to end, and it will hurt. Let it hurt.
By 2020, we will REALLY be at 3.5 percent or better and Trump will win by 350 electoral votes.
Buy a few AF-1s and it adds up...
Soy sauce for all those restaurants in China.
This is pure bull shit but this is the rod they will measure Trump against. He’ll still blow it away!
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