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GROSS DOMESTIC PRODUCT
THIRD QUARTER 1997 (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 3.3 percent in the third quarter of 1997, according to preliminary estimates released by the Commerce Department's Bureau of Economic Analysis. In the second quarter, real GDP increased 3.3 percent. Real GDP increased $58.0 billion in the third quarter, following an increase of $58.0 billion in the second.
The GDP estimates released today are based on more complete source data than were available for the advance estimates issued last month. In the advance estimates, the increase in real GDP was 3.5 percent.
The increase in third-quarter real GDP was more than accounted for by increases in personal consumption expenditures, in producers' durable equipment, and in exports of goods and services.
The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 1.3 percent in the third quarter, compared with an increase of 0.8 percent in the second. Excluding food and energy prices, the index increased 1.1 percent in the third quarter, compared with an increase of 1.6 percent in the second.
Real personal consumption expenditures increased 5.8 percent in the third quarter, compared with an increase of 0.9 percent in the second. Real nonresidential fixed investment increased 18.1 percent in the third quarter, compared with an increase of 14.6 percent in the second. Nonresidential structures increased 3.3 percent, in contrast to a decrease of 4.7 percent. Producers' durable equipment increased 24.1 percent, compared with an increase of 23.0 percent. Real residential fixed investment increased 3.7 percent, compared with an increase of 7.4 percent.
Real exports of goods and services increased 4.3 percent in the third quarter, compared with an increase of 18.4 percent in the second. Real imports of goods and services increased 14.0 percent, compared with an increase of 20.5 percent.
Real federal government consumption expenditures and gross investment decreased 1.0 percent in the third quarter, in contrast to an increase of 6.6 percent in the second. National defense increased 1.3 percent, compared with an increase of 7.5 percent. Nondefense decreased 5.4 percent, in contrast to an increase of 4.9 percent. Real state and local government increased 2.3 percent, compared with an increase of 1.2 percent.
The real change in business inventories subtracted 1.5 percentage points from the third-quarter change in real GDP, after adding 0.8 percentage point to the second-quarter change. Businesses increased inventories $49.5 billion in the third quarter, following an increase of $77.6 billion in the second quarter and an increase of $63.7 billion in the first.
Real final sales of domestic product–GDP less change in business inventories–increased 4.9 percent in the third quarter, compared with an increase of 2.5 percent in the second.
97-I 97-II 97-IIIR Current-Dollar Measures Gross Domestic Product 7,933.6 8,034.3 8,128.8 Final Sales of Domestic Product 7,867.4 7,953.2 8,078.0 Gross Domestic Purchases 8,032.4 8,123.1 8,239.1 Final Sales To Domestic Purchasers 7,966.3 8,042.0 8,188.2 Gross National Product 7,919.2 8,013.6 8,094.3 Level (billions of dollars)
97-I 97-II 97-IIIR Current-Dollar Measures Gross Domestic Product (GDP) 7.4 5.2 4.8 Final Sales of Domestic Product 5.6 4.4 6.4 Gross Domestic Purchases 7.9 4.6 5.8 Final Sales To Domestic Purchasers 6.1 3.9 7.5 Gross National Product 6.5 4.9 4.1 Percent Change From Preceding Period (Percent)
R--Revised.
Gross Domestic Purchases
Real gross domestic purchases–purchases by U.S. residents of goods and services wherever produced–increased 4.5 percent in the third quarter, compared with an increase of 3.7 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 2.6 percent in the third quarter, compared with an increase of 3.0 percent in the second. GNP includes, and GDP excludes, net receipts of factor income from the rest of the world.
Current-Dollar GDP
Current-dollar GDP–the market value of the nation's output of goods and services–increased 4.8 percent, or $94.5 billion, in the third quarter. In the second quarter, current- dollar GDP increased 5.2 percent, or $100.7 billion.
Revisions
The preliminary estimate of the third- quarter increase in real GDP is 0.2 percentage point, or $4.2 billion, lower than the advance estimate issued last month. The downward revision to GDP reflected downward revisions to nonresidential structures ($3.1 billion), to exports of goods and services ($3.0 billion), and to the change in business inventories ($2.0 billion) that more than offset upward revisions to producers' durable equipment ($2.7 billion) and to personal consumption expenditures for durable goods ($2.1 billion).
The preliminary estimate of the third-quarter increase in the price index for gross domestic purchases is 1.3 percent, 0.1 percentage point higher than the advance estimate.
November 26, 1997 U.S. Department of Commerce
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