EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, Tuesday, November 24, 2015
BEA 15—55


* 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 Mataloni: (202) 606-5304 (GDP) gdpniwd@bea.gov
Kate Pinard: (202) 606-5564 (Profits) cpniwd@bea.gov
Jeannine Aversa: (202) 606-2649 (News Media)  
National Income and Product Accounts
Gross Domestic Product: Third Quarter 2015 (Second Estimate)
Corporate Profits: Third Quarter 2015 (Preliminary Estimate)
      Real gross domestic product -- the value of the goods and services produced by the nationís
economy less the value of the goods and services used up in production, adjusted for price
changes -- increased at an annual rate of 2.1 percent in the third quarter of 2015, according to the
"second" estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP
increased 3.9 percent.

      The GDP estimate released today is 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 1.5
percent. With the second estimate for the third quarter, the decrease in private inventory investment was
smaller than previously estimated (see "Revisions" on page 2).

      The increase in real GDP in the third quarter primarily reflected positive contributions from
personal consumption expenditures (PCE), nonresidential fixed investment, state and local government
spending, residential fixed investment, and exports that were partly offset by a negative contribution
from private inventory investment. Imports, which are a subtraction in the calculation of GDP,
increased.

      The deceleration in real GDP in the third quarter primarily reflected a downturn in private
inventory investment and decelerations in exports, in PCE, in nonresidential fixed investment, in state
and local government spending, and in residential fixed investment that were partly offset by a
deceleration in imports.

      Real gross domestic income (GDI) -- the value of the costs incurred and the incomes earned in
the production of goods and services in the nationís economy -- increased 3.1 percent in the third
quarter, compared with an increase of 2.2 percent (revised) in the second. The average of real GDP and
real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI,
increased 2.6 percent in the third quarter, compared with an increase of 3.0 percent (revised) in the
second.
_____
      NOTE. Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise
specified. 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.
_____

      Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 2.2 percent in the third quarter, compared with an increase of 3.6 percent in
the second.

      The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 1.3 percent in the third quarter, compared with an increase of 1.5 percent in the second.
Excluding food and energy prices, the price index for gross domestic purchases increased 1.3 percent,
compared with an increase of 1.2 percent.

      Current-dollar GDP -- the market value of the goods and services produced by the nationís
economy less the value of the goods and services used up in production -- increased 3.4 percent, or
$151.0 billion, in the third quarter to a level of $18,064.7 billion. In the second quarter, current-dollar
GDP increased 6.1 percent, or $264.4 billion.


Revisions
      The upward revision to the percent change in real GDP primarily reflected an upward revision to
private inventory investment that was partly offset by downward revisions to PCE and to exports. For
information on revisions, see "The Revisions to GDP, GDI, and Their Major Components."


                                        Advance Estimate  Second Estimate
                                     (Percent change from preceding quarter)

Real GDP...............................       1.5               2.1
Current-dollar GDP.....................       2.7               3.4
Real GDI...............................       ---               3.1
Average of GDP and GDI.................       ---               2.6
Gross domestic purchases price index...       1.3               1.3


      For the second quarter of 2015, real GDI was revised up 1.5 percentage points, from 0.7 percent
to 2.2 percent, primarily reflecting an upward revision to private wages and salaries based on newly
available second-quarter tabulations from the BLS quarterly census of employment and wages.


                                             Corporate Profits

Profits from current production

      Profits from current production (corporate profits with inventory valuation adjustment (IVA) and
capital consumption adjustment (CCAdj)) decreased $22.7 billion in the third quarter, in contrast to an
increase of $70.4 billion in the second.

      Profits of domestic financial corporations decreased $8.5 billion in the third quarter, in contrast
to an increase of $34.6 billion in the second.  Profits of domestic nonfinancial corporations increased
$15.8 billion, compared with an increase of $24.3 billion.  The rest-of-the-world component of profits
decreased $30.0 billion, in contrast to an increase of $11.4 billion.  This measure is calculated as the
difference between receipts from the rest of the world and payments to the rest of the world.  In the third
quarter, receipts decreased $7.2 billion, and payments increased $22.7 billion.

      Taxes on corporate income increased $2.3 billion in the third quarter, compared with an increase
of $31.3 billion in the second.  Profits after tax with IVA and CCAdj decreased $25.0 billion, in contrast
to an increase of $39.2 billion.

      Dividends increased $27.1 billion in the third quarter, compared with an increase of $1.2 billion
in the second.  Undistributed profits decreased $52.2 billion, in contrast to an increase of $38.0 billion.
Net cash flow with IVA -- the internal funds available to corporations for investment -- decreased $34.9
billion, in contrast to an increase of $48.1 billion.

      The IVA and CCAdj are adjustments that convert inventory withdrawals and depreciation of
fixed assets reported on a tax-return, historical-cost basis to the current-cost economic measures used in
the national income and product accounts.  The IVA increased $35.3 billion in the third quarter, in
contrast to a decrease of $78.7 billion in the second.  The CCAdj decreased $1.4 billion, in contrast to an
increase of $7.7 billion.


Gross value added of nonfinancial domestic corporate business

      Real gross value added of nonfinancial corporations increased in the third quarter. Unit profits
from current production (profits per unit of real value added) were unchanged, reflecting an increase in
unit prices and a decrease in unit nonlabor costs that were offset by an increase in unit labor costs.

                                         *          *          *

      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
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                                         *          *          *

                          Next release -- December 22, 2015 at 8:30 A.M. EST for:
                       Gross Domestic Product:  Third Quarter 2015 (Third Estimate)
                         Corporate Profits:  Third Quarter 2015 (Revised Estimate)


                                         *          *          *


			                  Release dates in 2016

Gross Domestic Product

                 2015: IV and 2015 annual      2016: I            2016: II           2016: III

Advance....            January 29             April 28             July 29          October 28
Second.....           February 26               May 27           August 26         November 29
Third......              March 25              June 28        September 29         December 22


Corporate Profits

Preliminary...            ...                   May 27           August 26         November 29
Revised.......           March 25              June 28        September 29         December 22