Real gross domestic product (GDP) increased 3.2 percent in the third quarter of 2016, according to the “second” estimate released by the Bureau of Economic Analysis. The growth rate was 0.3 percentage point higher than the “advance” estimate released in October. In the second quarter, real GDP rose 1.4 percent.
Third‐quarter GDP highlights
The increase in real GDP partly reflected an increase in consumer spending on household services, notably on housing and utilities. Consumer spending on durable goods also increased, notably on motor vehicles and parts. However, spending on nondurable goods declined.
Exports of goods increased, notably in foods, feeds, and beverages and in consumer durable goods. Exports of services increased, mainly in travel. In addition, private inventory investment and federal government spending increased.
Offsetting these contributions to growth, housing investment and state and local government spending declined.
GDP update
The upward revision to third‐quarter GDP growth reflected upward revisions to consumer spending and to housing investment that were partly offset by downward revisions to business investment and to inventory investment.
Corporate profits
Profits increased 6.6 percent at a quarterly rate in the third quarter after decreasing 0.6 percent in the second quarter.
- Profits of domestic nonfinancial corporations increased 6.5 percent after decreasing 4.6 percent.
- Profits of domestic financial corporations rose 11.5 percent after rising 1.3 percent.
- Profits from the rest of the world increased 1.6 percent after increasing 10.3 percent.
Over the last 4 quarters, corporate profits increased 2.8 percent.
For more information, read the full report.