US annualised GDP (gross domestic product) rose
increased 4.2% in the second quarter of 2014, according to the “second” estimate
released by the Bureau of Economic Analysis. In the first quarter, real GDP
decreased 2.1%. The second-quarter growth rate was revised up 0.2%age point from
the “advance” estimate released in July.
highlights: The upturn in real GDP growth was primarily driven by the
- Exports, mainly goods exports, increased
after decreasing in the first quarter.
- Nonfarm inventory investment by motor
vehicle dealers turned up.
- Consumer spending, notably motor vehicles
and parts, increased more than in the first quarter.
In addition, business investment picked up, and
state and local government spending increased after decreasing in the first
In contrast to these contributions, imports (a
subtraction in the calculation of GDP) were higher in the second quarter than in
the first quarter.
The 0.2%age point revision to second-quarter GDP growth primarily reflected an
upward revision to business investment and a downward revision to imports. These
revisions were partly offset by a downward revision to inventory investment.
Corporate profits: BEA’s featured measure of
corporate profits increased 8.0% at a quarterly rate in the second quarter after
decreasing 9.4% in the first quarter. The second-quarter increase was the
largest since the third quarter of 2010.
- Profits of nonfinancial corporations rose
10.6% after falling 7.4% in the first quarter.
- Profits of financial corporations rose 7.3%
after falling 17.1%.
- Profits from the rest of the world rose 1.2%
after falling 6.1%.
Over the last 12 months, corporate profits fell