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BEA 13-50


* See the navigation bar at the right side of the news release text for links to data tables,
contact personnel and their telephone numbers, and supplementary materials.


Lisa S. Mataloni: (202) 606-5304 (GDP) gdpniwd@bea.gov
Kate Shoemaker: (202) 606-5564 (Profits) cpniwd@bea.gov
Recorded message: (202) 606-5306    
Jeannine Aversa: (202) 606-2649 (News Media)  
National Income and Product Accounts
Gross Domestic Product, 3rd quarter 2013 (advance estimate)
      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 (see the box on page 3 and
"Comparisons of Revisions to GDP" on page 4).  The "second" estimate for the third quarter, based on
more complete data, will be released on December 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.

___________
FOOTNOTE.  Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise
specified.  Quarter-to-quarter dollar changes are differences between these published estimates.  Percent
changes are calculated from unrounded data and are annualized.  "Real" estimates are in chained (2009)
dollars.  Price indexes are chain-type measures.

      This news release is available on BEA's Web site along with the Technical Note and Highlights
related to this release.
___________

      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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BOX.
      Information on the assumptions used for unavailable source data is provided in a technical note
that is posted with the news release on BEA's Web site.  Within a few days after the release, a detailed
"Key Source Data and Assumptions" file is posted on the Web site.  In the middle of each month, an
analysis of the current quarterly estimate of GDP and related series is made available on the Web site;
click on Survey of Current Business, "GDP and the Economy."  For information on revisions, see
"Revisions to GDP, GDI, and Their Major Components."

______________


      BEA's national, international, regional, and industry estimates; the Survey of Current Business;
and BEA news releases are available without charge on BEA's Web site at www.bea.gov. By visiting the
site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements.


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                          Next release -- December 5, 2013, at 8:30 A.M. EST for:
                        Gross Domestic Product:  Third Quarter 2013 (Second Estimate)
                          Corporate Profits:  Third Quarter (Preliminary Estimate)


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