News Release
These data have been superseded. Please see our latest releases for current estimates and contact information.
Gross Domestic Product, 3rd quarter 2009 (second estimate); Corporate Profits, 3rd quarter 2009 (preliminary estimate)
GROSS DOMESTIC PRODUCT: THIRD QUARTER 2009 (SECOND ESTIMATE)
CORPORATE PROFITS: THIRD QUARTER 2009 (PRELIMINARY)
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 2009, (that
is, from the second quarter to the third quarter), according to the "second" estimate released by the
Bureau of Economic Analysis. In the second quarter, real GDP decreased 0.7 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 3.5
percent (see "Revisions" on page 3).
The increase in real GDP in the third quarter primarily reflected positive contributions from
personal consumption expenditures (PCE), exports, private inventory investment, federal government
spending, and residential fixed investment that were partly offset by a negative contribution from
nonresidential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
The upturn in real GDP in the third quarter primarily reflected upturns in PCE, in private
inventory investment, in exports, and in residential fixed investment and a smaller decrease in
nonresidential fixed investment that were partly offset by an upturn in imports, a downturn in state and
local government spending, and a deceleration in federal government spending.
____________________________
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
(2005) dollars. Price indexes are chain-type measures.
This news release is available on BEAs Web site along with the Technical Note and Highlights
related to this release.
____________________________
Motor vehicle output added 1.45 percentage points to the third-quarter change in real GDP after
adding 0.19 percentage point to the second-quarter change. Final sales of computers subtracted 0.13
percentage point from the third-quarter change in real GDP after subtracting 0.04 percentage point from
the second-quarter change.
The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 1.4 percent in the third quarter, 0.2 percentage point less than in the advance estimate; this
index increased 0.5 percent in the second quarter. Excluding food and energy prices, the price index for
gross domestic purchases increased 0.4 percent in the third quarter, compared with an increase of 0.8
percent in the second.
Real personal consumption expenditures increased 2.9 percent in the third quarter, in contrast to a
decrease of 0.9 percent in the second. Real nonresidential fixed investment decreased 4.1 percent,
compared with a decrease of 9.6 percent. Nonresidential structures decreased 15.1 percent, compared
with a decrease of 17.3 percent. Equipment and software increased 2.3 percent, in contrast to a decrease
of 4.9 percent. Real residential fixed investment increased 19.5 percent, in contrast to a decrease of 23.3
percent.
Real exports of goods and services increased 17.0 percent in the third quarter, in contrast to a
decrease of 4.1 percent in the second. Real imports of goods and services increased 20.8 percent, in
contrast to a decrease of 14.7 percent.
Real federal government consumption expenditures and gross investment increased 8.3 percent in
the third quarter, compared with an increase of 11.4 percent in the second. National defense increased
8.9 percent, compared with an increase of 14.0 percent. Nondefense increased 6.9 percent, compared
with an increase of 6.1 percent. Real state and local government consumption expenditures and gross
investment decreased 0.1 percent, in contrast to an increase of 3.9 percent.
The change in real private inventories added 0.87 percentage point to the third-quarter change in
real GDP, after subtracting 1.42 percentage points from the second-quarter change. Private businesses
decreased inventories $133.4 billion in the third quarter, following decreases of $160.2 billion in the
second quarter and of $113.9 billion in the first.
Real final sales of domestic product -- GDP less change in private inventories -- increased 1.9
percent in the third quarter, compared with an increase of 0.7 percent in the second.
Gross domestic purchases
Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 3.5 percent in the third quarter, in contrast to a decrease of 2.3 percent in the
second.
Gross national product
Real gross national product -- the goods and services produced by the labor and property supplied
by U.S. residents -- increased 3.8 percent in the third quarter, in contrast to a decrease of 1.0 percent in
the second. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which
increased $31.6 billion in the third quarter after decreasing $7.4 billion in the second; in the third
quarter, receipts increased $7.1 billion, and payments decreased $24.5 billion.
Current-dollar GDP
Current-dollar GDP -- the market value of the nation's output of goods and services -- increased
3.3 percent, or $115.1 billion, in the third quarter to a level of $14,266.3 billion. In the second quarter,
current-dollar GDP decreased 0.8 percent, or $26.8 billion.
Revisions
The second estimate of the third-quarter increase in real GDP is 0.7 percentage point lower, or
$23.7 billion, than the advance estimate issued last month, primarily reflecting an upward revision to
imports and downward revisions to personal consumption expenditures and to nonresidential fixed
investment that were partly offset by an upward revision to exports.
Advance Second
(Percent change from preceding quarter)
Real GDP......................................... 3.5 2.8
Current-dollar GDP............................... 4.3 3.3
Gross domestic purchases price index............. 1.6 1.4
Corporate Profits
Profits from current production (corporate profits with inventory valuation and capital
consumption adjustments) increased $130.0 billion in the third quarter, compared with an increase of
$43.8 billion in the second quarter. Current-production cash flow (net cash flow with inventory
valuation adjustment) -- the internal funds available to corporations for investment -- increased $41.6
billion in the third quarter, in contrast to a decrease of $30.5 billion in the second.
Taxes on corporate income increased $6.7 billion in the third quarter, compared with an increase
of $35.6 billion in the second. Profits after tax with inventory valuation and capital consumption
adjustments increased $123.3 billion in the third quarter, compared with an increase of $8.2 billion in
the second. Dividends decreased $12.7 billion compared with a decrease of $62.1 billion; current-
production undistributed profits increased $136.1 billion, compared with an increase of $70.3 billion.
Domestic profits of financial corporations increased $97.0 billion in the third quarter, compared
with an increase of $28.5 billion in the second. Domestic profits of nonfinancial corporations increased
$12.9 billion in the third quarter, compared with an increase of $29.8 billion in the second. In the third
quarter, real gross value added of nonfinancial corporations increased, and profits per unit of real value
added increased. The increase in unit profits reflected a decrease in unit nonlabor costs that more than
offset a decrease in unit prices; unit labor costs were unchanged.
The rest-of-the-world component of profits increased $20.1 billion in the third quarter, in contrast
to a decrease of $14.6 billion in the second. 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 third-quarter increase was
accounted for by an increase in receipts and a slight decrease in payments.
Profits before tax increased $156.2 billion in the third quarter, compared with an increase of $90.6
billion in the second. 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 increased $9.2 billion in the third quarter (from -$128.6 billion to -$119.4 billion), compared
with an increase of $16.3 billion in the second. The inventory valuation adjustment decreased $35.5
billion (from $18.1 billion to -$17.4 billion), compared with a decrease of $63.0 billion.
* * *
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.
* * *
Next release December 22, 2009, at 8:30 A.M. EST for:
Gross Domestic Product: Third Quarter 2009 (Third Estimate)
Corporate Profits: Third Quarter (Revised)
Release dates in 2010
Gross Domestic Product
2009: IV and 2009 annual 2010: I 2010: II 2010: III
Advance January 29 April 30 July 30 October 29
Second.. February 26 May 27 August 27 November 23
Third. March 26 June 25 September 30 December 22
Corporate Profits
Preliminary... ........... May 27 August 27 November 23
Revised....... March 26 June 25 September 30 December 22