EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, Thursday, December 21, 2017
Gross Domestic Product, 3rd quarter 2017 (third estimate); Corporate Profits, 3rd quarter 2017 (revised estimate)
Real gross domestic product (GDP) increased at an annual rate of 3.2 percent in the third quarter of 2017 (table 1), according to the "third" estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 3.1 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 3.3 percent. With this third estimate for the third quarter, personal consumption expenditures increased less than previously estimated, but the general picture of economic growth remains the same (see "Updates to GDP" on page 2).
Real gross domestic income (GDI) increased 2.0 percent in the third quarter, compared with an increase of 2.3 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 2.6 percent in the third quarter, compared with an increase of 2.7 percent in the second quarter (table 1). The increase in real GDP in the third quarter reflected positive contributions from personal consumption expenditures (PCE), private inventory investment, nonresidential fixed investment, exports, federal government spending, and state and local government spending that were partly offset by a negative contribution from residential fixed investment. Imports, which are a subtraction in the calculation of GDP, decreased. The slight acceleration in real GDP in the third quarter primarily reflected an acceleration in private inventory investment and an upturn in state and local government spending that were partly offset by decelerations in PCE, nonresidential fixed investment, and exports. Current-dollar GDP increased 5.3 percent, or $250.6 billion, in the third quarter to a level of $19,500.6 billion. In the second quarter, current-dollar GDP increased 4.1 percent, or $192.3 billion (table 1 and table 3). The price index for gross domestic purchases increased 1.7 percent in the third quarter, compared with an increase of 0.9 percent in the second quarter (table 4). The PCE price index increased 1.5 percent, compared with an increase of 0.3 percent. Excluding food and energy prices, the PCE price index increased 1.3 percent, compared with an increase of 0.9 percent (appendix table A). Updates to GDP The downward revision to the percent change in real GDP primarily reflected a downward revision to PCE that was partly offset by an upward revision to state and local government spending. For more information, see the Technical Note. A detailed "Key Source Data and Assumptions" file is also posted for each release. For information on updates to GDP, see the “Additional Information” section that follows. Advance Estimate Second Estimate Third Estimate (Percent change from preceding quarter) Real GDP 3.0 3.3 3.2 Current-dollar GDP 5.2 5.5 5.3 Real GDI … 2.5 2.0 Average of Real GDP and Real GDI … 2.9 2.6 Gross domestic purchases price index 1.8 1.8 1.7 PCE price index 1.5 1.5 1.5 Corporate Profits (table 12) Profits from current production (corporate profits with inventory valuation adjustment and capital consumption adjustment) increased $90.2 billion in the third quarter, compared with an increase of $14.4 billion in the second quarter. Profits of domestic financial corporations increased $47.8 billion in the third quarter, in contrast to a decrease of $33.8 billion in the second. Profits of domestic nonfinancial corporations increased $10.4 billion, compared with an increase of $59.1 billion. Rest-of-the-world profits increased $32.0 billion, in contrast to a decrease of $10.8 billion. In the third quarter, receipts increased $26.9 billion, and payments decreased $5.2 billion. * * * Next release: January 26, 2018 at 8:30 A.M. EST Gross Domestic Product: Fourth Quarter and Annual 2017 (Advance Estimate) * * * Release Dates in 2018 Estimate 2017: IV and annual 2018: I 2018: II 2018: III Gross Domestic Product Advance January 26 April 27 July 27 October 26 Second February 28 May 30 August 29 November 28 Third March 28 June 28 September 27 December 21 Corporate Profits Preliminary … May 30 August 29 November 28 Revised March 28 June 28 September 27 December 21