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 3.9 percent in the second quarter of 2015, according to the
"third" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased
0.6 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 3.7
percent. With the third estimate for the second quarter, the general picture of economic growth remains
the same; personal consumption expenditures (PCE) and nonresidential fixed investment increased more
than previously estimated (see “Revisions” on page 2).

      The increase in real GDP in the second quarter primarily reflected positive contributions from
PCE, exports, nonresidential fixed investment, state and local government spending, and residential
fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.

      Real GDP increased 3.9 percent in the second quarter, after increasing 0.6 percent in the first.
The acceleration in real GDP in the second quarter reflected an upturn in exports, an acceleration in
PCE, a deceleration in imports, an upturn in state and local government spending, and an acceleration in
nonresidential fixed investment that were partly offset by decelerations in private inventory investment
and in federal government spending.

	Real gross domestic income (GDI) -- the value of the costs incurred and the incomes earned in
the production of goods and services in the nation’s economy -- increased 0.7 percent in the second
quarter, compared with an increase of 0.4 percent in the first. 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 second quarter, compared with an increase of 0.5 percent in the first.

_______

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 3.6 percent in the second quarter, compared with an increase of 2.5 percent in
the first.

      The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 1.5 percent in the second quarter, in contrast to a decrease of 1.6 percent in the first. Excluding
food and energy prices, the price index for gross domestic purchases increased 1.2 percent, compared
with an increase of 0.2 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 6.1 percent, or
$264.4 billion, in the second quarter to a level of $17,913.7 billion. In the first quarter, current-dollar
GDP increased 0.8 percent, or $33.3 billion.


Revisions

      The upward revision to the percent change in real GDP primarily reflected upward revisions to
PCE, to nonresidential fixed investment, and to residential fixed investment that were partly offset by a
downward revision to private inventory investment. 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...............................            2.3                 3.7                 3.9
Current-dollar GDP.....................            4.4                 5.9                 6.1
Real GDI...............................            ...                 0.6                 0.7
Average of Real GDP and Real GDI.......            ...                 2.1                 2.3
Gross domestic purchases price index...            1.4                 1.5                 1.5


                                          Corporate Profits


Profits from current production

      Profits from current production (corporate profits with inventory valuation adjustment (IVA) and
capital consumption adjustment (CCAdj)) increased $70.4 billion in the second quarter, in contrast to a
decrease of $123.0 billion in the first.

      Profits of domestic financial corporations increased $34.6 billion in the second quarter, in
contrast to a decrease of $23.4 billion in the first. Profits of domestic nonfinancial corporations
increased $24.3 billion, in contrast to a decrease of $70.5 billion. The rest-of-the-world component of
profits increased $11.4 billion, in contrast to a decrease of $29.0 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
second quarter, receipts increased $24.9 billion, and payments increased $13.4 billion.

      Taxes on corporate income increased $31.3 billion in the second quarter, compared with an
increase of $5.5 billion in the first. Profits after tax with IVA and CCAdj increased $39.2 billion, in
contrast to a decrease of $128.4 billion.

      Dividends increased $1.2 billion in the second quarter, compared with an increase of $6.3 billion
in the first. Undistributed profits increased $38.0 billion, in contrast to a decrease of $134.7 billion. Net
cash flow with IVA -- the internal funds available to corporations for investment -- increased $48.1
billion, in contrast to a decrease of $135.5 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 decreased $78.7 billion in the second quarter, in
contrast to an increase of $45.7 billion in the first. The CCAdj increased $7.7 billion, in contrast to a
decrease of $208.1 billion.


Corporate profits with IVA

      Profits of domestic financial corporations increased $34.3 billion in the second quarter, in
contrast to a decrease of $3.1 billion in the first. Profits of domestic nonfinancial corporations increased
$17.0 billion, compared with an increase of $117.3 billion. The second-quarter increase in profits of
nonfinancial corporations primarily reflected an increase in “other” nonfinancial industries that was
partly offset by a decrease in retail trade industries. A small increase in manufacturing industries
reflected an increase in durable goods that was mostly offset by a decrease in nondurable goods.


Gross value added of nonfinancial domestic corporate business

      Real gross value added of nonfinancial corporations decreased slightly in the second quarter.
Profits per unit of real value added increased, reflecting an increase in unit prices and a decrease in unit
nonlabor costs that were partly offset by an increase in unit labor costs.



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      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 -- October 29, 2015 at 8:30 A.M. EDT for:
                      Gross Domestic Product:  Third Quarter 2015 (Advance Estimate)