WASHINGTON, D.C. (Nov. 7, 2013) — 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 2.8 percent in the third quarter of 2013 (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 2.5 percent.
The Bureau emphasized that 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 Dec. 5, 2013.
The increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures (PCE), private inventory investment, exports, residential fixed investment, nonresidential fixed investment, and state and local government spending that were partly offset by a negative contribution from federal government spending. Imports, which are a subtraction in the calculation of GDP, increased.
The acceleration in real GDP growth in the third quarter primarily reflected a deceleration in imports and accelerations in private inventory investment and in state and local government spending that were partly offset by decelerations in exports, in nonresidential fixed investment, and in PCE.
The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 1.8 percent in the third quarter, compared with an increase of 0.2 percent in the second. Excluding food and energy prices, the price index for gross domestic purchases increased 1.5 percent in the third quarter, compared with an increase of 0.8 percent in the second.
Real personal consumption expenditures increased 1.5 percent in the third quarter, compared with an increase of 1.8 percent in the second. Durable goods increased 7.8 percent, compared with an increase of 6.2 percent. Nondurable goods increased 2.7 percent, compared with an increase of 1.6 percent. Services increased 0.1 percent, compared with an increase of 1.2 percent.
Real nonresidential fixed investment increased 1.6 percent in the third quarter, compared with an increase of 4.7 percent in the second. Nonresidential structures increased 12.3 percent, compared with an increase of 17.6 percent. Equipment decreased 3.7 percent, in contrast to an increase of 3.3 percent. Intellectual property products increased 2.2 percent, in contrast to a decrease of 1.5 percent. Real residential fixed investment increased 14.6 percent, compared with an increase of 14.2 percent.
Real exports of goods and services increased 4.5 percent in the third quarter, compared with an increase of 8.0 percent in the second. Real imports of goods and services increased 1.9 percent,
compared with an increase of 6.9 percent.
Real federal government consumption expenditures and gross investment decreased 1.7 percent
in the third quarter, compared with a decrease of 1.6 percent in the second. National defense decreased 0.7 percent, compared with a decrease of 0.6 percent. Nondefense decreased 3.3 percent, compared with a decrease of 3.1 percent. Real state and local government consumption expenditures and gross investment increased 1.5 percent, compared with an increase of 0.4 percent.
The change in real private inventories added 0.83 percentage point to the third-quarter change in real GDP after adding 0.41 percentage point to the second-quarter change. Private businesses increased inventories $86.0 billion in the third quarter, following increases of $56.6 billion in the second quarter and $42.2 billion in the first.
Real final sales of domestic product — GDP less change in private inventories — increased 2.0
percent in the third quarter, compared with an increase of 2.1 percent in the second.
Gross domestic purchases
Real gross domestic purchases — purchases by U.S. residents of goods and services wherever
produced — increased 2.5 percent in the third quarter, the same increase as in the second.
Disposition of personal income
Current-dollar personal income increased $132.7 billion (3.8 percent) in the third quarter,
compared with an increase of $139.1 billion (4.1 percent) in the second. The deceleration in personal income primarily reflected decelerations in personal dividend income and in wages and salaries that were partly offset by an acceleration in government social benefits to persons and an upturn in farm proprietors income.
Personal current taxes decreased $5.3 billion in the third quarter, in contrast to an increase of
$35.8 billion in the second.
Disposable personal income increased $138.1 billion (4.5 percent) in the third quarter, compared with an increase of $103.2 billion (3.4 percent) in the second. Real disposable personal income increased 2.5 percent, compared with an increase of 3.5 percent.
Personal outlays increased $109.0 billion (3.7 percent) in the third quarter, compared with an
increase of $42.1 billion (1.4 percent) in the second. Personal saving — disposable personal income less personal outlays — was $592.2 billion in the third quarter, compared with $563.2 billion in the second.
The personal saving rate — personal saving as a percentage of disposable personal income — was 4.7 percent in the third quarter, compared with 4.5 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 financial accounts of the United States (formerly called the 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 4.8 percent, or $196.6 billion, in the third quarter to a level of $16,857.6 billion. In the second quarter, current-dollar GDP increased 3.1 percent, or $125.7 billion.
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