EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, Tuesday, December 22, 2015
BEA 15—66


* 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 (Third Estimate)
Corporate Profits: Third Quarter 2015 (Revised Estimate)
      Real gross domestic product -- the value of the goods and services produced by the nation's
economy less the value of the goods and services used up in production, adjusted for price
changes -- increased at an annual rate of 2.0 percent in the third quarter of 2015, according to the "third"
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 "second" estimate issued last month. In the second estimate, the increase in real GDP was 2.1
percent.  With the third estimate for the third quarter, the general picture of economic growth remains
the same; private inventory investment decreased more 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, and in
state and local government spending that were partly offset by a deceleration in imports.

      Real gross domestic income (GDI), which measures the value of the production of goods and
services in the United States as the costs incurred and the incomes earned in production, increased 2.7
percent in the third quarter, compared with an increase of 2.2 percent 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 2.3 percent in the third quarter, compared with an increase of 3.0 percent in the
second.

_____
      FOOTNOTE.  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 nation's
economy less the value of the goods and services used up in production -- increased 3.3 percent, or
$146.5 billion, in the third quarter to a level of $18,060.2 billion.  In the second quarter, current-dollar
GDP increased 6.1 percent, or $264.4 billion.

Revisions

      The small downward revision to the percent change in real GDP primarily reflected a downward
revision to private inventory investment, based primarily on revised Census inventory data. For more
information, see the Technical Note. For information on revisions, see "The Revisions to GDP, GDI,
and Their Major Components."


                                             Advance Estimate     Second Estimate     Third Estimate
					             (Percent change from preceding quarter)
Real GDP...............................            1.5                 2.1                 2.0
Current-dollar GDP.....................            2.7                 3.4                 3.3
Real GDI...............................            ...                 3.1                 2.7
Average of Real GDP and Real GDI.......            ...                 2.6                 2.3
Gross domestic purchases price index...            1.3                 1.3                 1.3


Corporate Profits

Profits from current production

      Profits from current production (corporate profits with inventory valuation adjustment (IVA) and
capital consumption adjustment (CCAdj)) decreased $33.0 billion in the third quarter, in contrast to an
increase of $70.4 billion in the second.

      Profits of domestic financial corporations increased $1.8 billion in the third quarter, compared
with an increase of $34.6 billion in the second.  Profits of domestic nonfinancial corporations decreased
$11.8 billion, in contrast to an increase of $24.3 billion.  The rest-of-the-world component of profits
decreased $23.1 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 $3.5 billion, and payments increased $19.5 billion.

      Taxes on corporate income decreased $6.9 billion in the third quarter, in contrast to an increase
of $31.3 billion in the second.  Profits after tax with IVA and CCAdj decreased $26.2 billion, in contrast
to an increase of $39.2 billion.

      Dividends increased $26.0 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 $35.1
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 $35.9 billion in the third quarter, in
contrast to a decrease of $78.7 billion in the second.  The CCAdj decreased $1.3 billion, in contrast to an
increase of $7.7 billion.

Corporate profits with IVA

      Profits of domestic financial corporations increased $2.5 billion in the third quarter, compared
with an increase of $34.3 billion in the second. Profits of domestic nonfinancial corporations decreased
$11.1 billion, in contrast to an increase of $17.0 billion. The third-quarter decrease in profits of
nonfinancial corporations primarily reflected a decrease in manufacturing of durable goods, specifically
motor vehicles and machinery, and a decrease in utilities.

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) decreased, reflecting an increase in unit
labor costs that was partly offset by an increase in unit prices; unit nonlabor costs were unchanged in the
third quarter.


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      BEA's national, international, regional, and industry estimates; the Survey of Current Business;
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                              Next release -- January 29, 2016 at 8:30 A.M. EST for:
                   Gross Domestic Product:  Fourth Quarter and Annual 2015 (Advance 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