WASHIGNTON (Oct. 26, 2012) — Real gross domestic product (GDP) – the output of goods and services produced by labor and property located in the United States – increased at an annual rate of 2 percent in the third quarter of 2012 (that is, from the second quarter to the third quarter), according to the “advance” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 1.3 percent.
The Bureau said the third-quarter advance estimate released today is based on source data that are incomplete or subject to further revision by the source agency. The “second” estimate for the third quarter, based on more complete data, will be released on Nov. 29.
The increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures (PCE), federal government spending, and residential fixed investment that were partly offset by negative contributions from exports, nonresidential fixed investment, and private inventory investment. Imports, which are a subtraction in the calculation of GDP, decreased.
The acceleration in real GDP in the third quarter primarily reflected an upturn in federal government spending, a downturn in imports, an acceleration in PCE, a smaller decrease in private inventory investment, an acceleration in residential fixed investment, and a smaller decrease in state and local government spending that were partly offset by downturns in exports and in nonresidential fixed investment.
Final sales of computers added 0.17 percentage point to the third-quarter change in real GDP after subtracting 0.10 percentage point from the second-quarter change. Motor vehicle output subtracted 0.47 percentage point from the third-quarter change in real GDP after adding 0.20 percentage point to the second-quarter change.
The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 1.5 percent in the third quarter, compared with an increase of 0.7 percent in the second. Excluding food and energy prices, the price index for gross domestic purchases increased 1.3 percent in the third quarter, compared with an increase of 1.4 percent in the second.
Real personal consumption expenditures increased 2 percent in the third quarter, compared with an increase of 1.5 percent in the second. Durable goods increased 8.5 percent, in contrast to a decrease of 0.2 percent. Nondurable goods increased 2.4 percent, compared with an increase of 0.6 percent. Services increased 0.8 percent, compared with an increase of 2.1 percent.
Real nonresidential fixed investment decreased 1.3 percent in the third quarter, in contrast to an increase of 3.6 percent in the second. Nonresidential structures decreased 4.4 percent, in contrast to an increase of 0.6 percent. Equipment and software decreased less than 0.1 percent, in contrast to an increase of 4.8 percent. Real residential fixed investment increased 14.4 percent, compared with an increase of 8.5 percent.
Real exports of goods and services decreased 1.6 percent in the third quarter, in contrast to an increase of 5.3 percent in the second. Real imports of goods and services decreased 0.2 percent, in contrast to an increase of 2.8 percent.
Real federal government consumption expenditures and gross investment increased 9.6 percent in the third quarter, in contrast to a decrease of 0.2 percent in the second. National defense increased 13 percent, in contrast to a decrease of 0.2 percent. Non-defense increased 3.0 percent, in contrast to a decrease of 0.4 percent. Real state and local government consumption expenditures and gross investment decreased 0.1 percent, compared with a decrease of 1 percent.
The change in real private inventories subtracted 0.12 percentage point from the third-quarter change in real GDP after subtracting 0.46 percentage point from the second-quarter change. Farm inventories subtracted 0.42 percentage point from the third-quarter change after subtracting 0.17 percentage point from the second-quarter change. Nonfarm inventories added 0.30 percentage point to the third-quarter change after subtracting 0.29 percentage point from the second-quarter change.
Real final sales of domestic product – GDP less change in private inventories – increased 2.1 percent in the third quarter, compared with an increase of 1.7 percent in the second.
Gross domestic purchases
Real gross domestic purchases – purchases by U.S. residents of goods and services wherever produced – increased 2.1 percent in the third quarter, compared with an increase of 1 percent in the second.
Disposition of personal income
Current-dollar personal income increased $89.3 billion (2.7 percent) in the third quarter, compared with an increase of $130.3 billion (4.0 percent) in the second.
Personal current taxes increased $13.2 billion in the third quarter, compared with an increase of $20.2 billion in the second.
Disposable personal income increased $76.1 billion (2.6 percent) in the third quarter, compared with an increase of $110.0 billion (3.8 percent) in the second. Real disposable personal income increased 0.8 percent, compared with an increase of 3.1 percent.
Personal outlays increased $111.4 billion (4.0 percent) in the third quarter, compared with an increase of $57.4 billion (2.0 percent) in the second. Personal saving – disposable personal income less personal outlays – was $445.0 billion in the third quarter, compared with $480.3 billion in the second. The personal saving rate – personal saving as a percentage of disposable personal income – was 3.7 percent in the third quarter, compared with 4.0 percent in the second. For a comparison of personal saving in BEA’s national income and product accounts with personal saving in the Federal Reserve Board’s flow of funds accounts and data on changes in net worth, go to www.bea.gov/national/nipaweb/Nipa-Frb.asp.
Current-dollar GDP
Current-dollar GDP – the market value of the nation’s output of goods and services – increased 5 percent, or $190.1 billion, in the third quarter to a level of $15,775.7 billion. In the second quarter, current-dollar GDP increased 2.8 percent, or $107.3 billion.
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