U.S. GDP rises 1 percent in Q2
Nonresidential structures increase 15.7 percent; residential fixed investment grows 3.4 percent during quarter.
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 1.0 percent in the second quarter of 2011, (that is, from the first quarter to the second quarter), according to the "second" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.4 percent.
The GDP estimates released today are based on more complete source data than were available for the "advance" estimate issued last month. In the advance estimate, the increase in real GDP was 1.3 percent.
The increase in real GDP in the second quarter primarily reflected positive contributions from nonresidential fixed investment, exports, personal consumption expenditures (PCE), and federal government spending that were partly offset by negative contributions from state and local government spending and private inventory investment. Imports, which are a subtraction in the calculation of GDP, increased.
The acceleration in real GDP in the second quarter primarily reflected a deceleration in imports, an upturn in federal government spending, and an acceleration in nonresidential fixed investment that were partly offset by decelerations in PCE and in exports and a downturn in private inventory investment.
Final sales of computers added 0.11 percentage point to the second-quarter change in real GDP after adding 0.08 percentage point to the first-quarter change. Motor vehicle output subtracted 0.15 percentage point from the second-quarter change in real GDP after adding 1.08 percentage points to the first-quarter change.
The price index for gross domestic purchases, which measures prices paid by U.S. residents,increased 3.3 percent in the second quarter, 0.1 percentage point more than in the advance estimate; this index increased 4.0 percent in the first quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 2.6 percent in the second quarter, compared with an increase of 2.4 percent in the first.
Real personal consumption expenditures increased 0.4 percent in the second quarter, compared with an increase of 2.1 percent in the first. Real nonresidential fixed investment increased 9.9 percent, compared with an increase of 2.1 percent. Nonresidential structures increased 15.7 percent, in contrast to a decrease of 14.3 percent. Equipment and software increased 7.9 percent, compared with an increase of 8.7 percent. Real residential fixed investment increased 3.4 percent, in contrast to a decrease of 2.4
percent.
Real exports of goods and services increased 3.1 percent in the second quarter, compared with an increase of 7.9 percent in the first. Real imports of goods and services increased 1.9 percent, compared with an increase of 8.3 percent.
Real federal government consumption expenditures and gross investment increased 2.0 percent in the second quarter, in contrast to a decrease of 9.4 percent in the first. National defense increased 7.1 percent, in contrast to a decrease of 12.6 percent. Nondefense decreased 7.5 percent, compared with a decrease of 2.7 percent. Real state and local government consumption expenditures and gross investment decreased 2.8 percent, compared with a decrease of 3.4 percent.
The change in real private inventories subtracted 0.23 percentage point from the second-quarter change in real GDP, after adding 0.32 percentage point to the first-quarter change. Private businesses increased inventories $40.6 billion in the second quarter, following increases of $49.1 billion in the first quarter and of $38.3 billion in the fourth.
Real final sales of domestic product -- GDP less change in private inventories -- increased 1.2 percent in the second quarter, after increasing less than 0.1 percent.
Gross domestic purchases
Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 0.9 percent in the second quarter, compared with an increase of 0.7 percent in the first.
Gross national product
Real gross national product -- the goods and services produced by the labor and property
supplied by U.S. residents -- increased 1.7 percent in the second quarter, compared with an increase of 1.5 percent in the first. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which increased $24.3 billion in the second quarter after increasing $36.6 billion in the first; in the second quarter, receipts increased $29.0 billion, and payments increased $4.7 billion.
Current-dollar GDP
Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 3.5 percent, or $129.0 billion, in the second quarter to a level of $14,996.8 billion. In the first quarter, current-dollar GDP increased 3.1 percent, or $112.8 billion.
Corporate Profits
Profits from current production (corporate profits with inventory valuation and capital
consumption adjustments) increased $57.3 billion in the second quarter, compared with an increase of $19.0 billion in the first quarter. Current-production cash flow (net cash flow with inventory valuation adjustment) -- the internal funds available to corporations for investment -- increased $83.8 billion in the second quarter, compared with an increase of $21.1 billion in the first.
Taxes on corporate income decreased $3.0 billion in the second quarter, in contrast to an increase of $17.6 billion in the first. Profits after tax with inventory valuation and capital consumption adjustments increased $60.3 billion in the second quarter, compared with an increase of $1.4 billion in the first. Dividends increased $13.6 billion compared with an increase of $19.0 billion; current production undistributed profits increased $46.7 billion, in contrast to a decrease of $17.6 billion.
Domestic profits of financial corporations decreased $54.2 billion in the second quarter, compared with a decrease of $38.7 billion in the first. Domestic profits of nonfinancial corporations increased $84.4 billion in the second quarter, compared with an increase of $19.7 billion in the first. In the second quarter, real gross value added of nonfinancial corporations increased, and profits per unit of real value added increased. The increase in unit profits reflected an increase in unit prices and decreases in both the unit labor and nonlabor costs corporations incurred.
The rest-of-the-world component of profits increased $27.1 billion in the second quarter, compared with an increase of $37.9 billion in the first. 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 second-quarter increase was accounted for by a larger increase in receipts than in payments.
Profits before tax increased $8.7 billion in the second quarter, compared with an increase of $134.6 billion in the first. 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 decreased $8.2 billion in the second quarter (from $115.4 billion to $107.2 billion), compared with a decrease of $89.8 billion in the first. The inventory valuation adjustment increased $56.7 billion (from -$116.0 billion to -$59.3 billion), in contrast to a decrease of $25.7 billion.
CONTRACTOR SUPPLY MAGAZINE
The October/November 2024 of Contractor Supply magazine is here!
Our cover story, A Rewarding Passion - Dale Hahs II, third-generation of Denver's AIS Industrial & Construction Supply, is STAFDA's incoming 2025 president.
A Special STAFDA section featuring a welcome address, an agenda, session previewss by presenters and much more. Also in this issue are our Industry Updates on: Lifting, Moving and Material Handling; Lasers, Levels and Measurement; Hand Tools; Cordless Power Tools; Drill Bits and Cutting Tools; and Toolboxes, Bags and Belts.
This digital edition, sponsored by BECK AMERICA Inc., is fully searchable and contains live links to every advertiser and new product listing. Click away!
| Read the Articles Read the Digital Edition |
