Real gross domestic product (GDP) increased 3.1 percent in the second quarter of 2017, according to the “third” estimate released by the Bureau of Economic Analysis. The growth rate was 0.1 percentage point more than the “second” estimate released in August. In the first quarter, real GDP increased 1.2 percent.
GDP highlights
The second-quarter increase in real GDP reflected increases in consumer spending on goods and services as well as increases in business investment, exports, and federal government spending.
The increase in consumer spending was led by increases in housing and utilities; other services, notably in communication services; and other nondurable goods, primarily in prescription drugs. The increase in business investment reflected increases in all three components: equipment, structures, and intellectual property products.
Partly offsetting these increases were declines in housing investment and state and local government spending.
Updates to GDP
The revision to the third estimate of GDP growth mainly reflected an upward revision to private inventory investment, notably farm inventories. For more information see the technical note.
Corporate profits
Corporate profits increased 0.7 percent at a quarterly rate in the second quarter of 2017 after decreasing 2.1 percent in the first quarter.
- Profits of domestic nonfinancial corporations increased 4.9 percent after increasing 0.3 percent.
- Profits of domestic financial corporations decreased 7.1 percent after decreasing 7.9 percent.
- Profits from the rest of the world (net) decreased 2.5 percent after decreasing 2.1 percent.
Corporate profits increased 6.4 percent from the second quarter of 2016.
For more information, read the full report.