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GROSS DOMESTIC PRODUCT
THIRD QUARTER 1997 (ADVANCE)
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 3.5 percent in the third quarter of 1997, according to advance estimates released by the Commerce Department's Bureau of Economic Analysis. In the second quarter, real GDP increased 3.3 percent. Real GDP increased $62.2 billion in the third quarter, following an increase of $58.0 billion in the second.
The Bureau emphasized that the third-quarter estimates are based on preliminary and incomplete source data. Information on the assumptions used for missing source data is available on request. Revised estimates based on more comprehensive data will be issued next month.
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 1.2 percent in the third quarter, compared with an increase of 0.8 percent in the second. Excluding food and energy prices, the index increased 1.0 percent in the third quarter, compared with an increase of 1.6 percent in the second.
Real personal consumption expenditures increased 5.7 percent in the third quarter, compared with an increase of 0.9 percent in the second. Durable goods purchases increased 16.7 percent, in contrast to a decrease of 5.4 percent. Nondurable goods increased 4.7 percent, in contrast to a decrease of 2.1 percent. Services expenditures increased 4.1 percent, compared with an increase of 3.9 percent.
Real nonresidential fixed investment increased 18.7 percent in the third quarter, compared with an increase of 14.6 percent in the second. Nonresidential structures increased 10.1 percent, in contrast to a decrease of 4.7 percent. Producers' durable equipment increased 22.1 percent, compared with an increase of 23.0 percent. Real residential fixed investment increased 2.8 percent, compared with an increase of 7.4 percent.
Real exports of goods and services increased 5.6 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 1.2 percent in the third quarter, in contrast to an increase of 6.6 percent in the second. National defense increased 1.1 percent, compared with an increase of 7.5 percent. Nondefense decreased 5.5 percent, in contrast to an increase of 4.9 percent. Real state and local government increased 2.2 percent, compared with an increase of 1.2 percent.
The real change in business inventories subtracted 1.3 percentage points from the third-quarter change in real GDP, after adding 0.8 percentage point to the second-quarter change. Businesses increased inventories $51.5 billion in the third quarter, following increases of $77.6 billion in the second quarter and $63.7 billion in the first.
Real final sales of domestic product–GDP less change in business inventories–increased 5.0 percent in the third quarter, compared with an increase of 2.5 percent in the second.
Level (billions of dollars)
97-I 97-II 97-III Current-Dollar Measures Gross Domestic Product 7,933.6 8,034.3 8,131.7 Final Sales of Domestic Product (GDP less CBI) 7,867.4 7,953.2 8,078.7 Gross Domestic Purchases 8,032.4 8,123.1 8,239.1 Final Sales To Domestic Purchasers 7,966.3 8,042.0 8,186.0 Gross National Product 7,919.2 8,013.6
Percent Change From Preceding Period (Percent)
97-I 97-II 97-III Current-Dollar Measures Gross Domestic Product (GDP) 7.4 5.2 4.9 Final Sales of Domestic Product 5.6 4.4 6.5 Gross Domestic Purchases 7.9 4.6 5.8 Final Sales To Domestic Purchasers 6.1 3.9 7.4 Gross National Product 6.5 4.9
Gross Domestic Purchases
Real gross domestic purchases–purchases by U.S. residents of goods and services wherever produced–increased 4.6 percent in the third quarter, compared with an increase of 3.7 percent in the second.
Disposition Of Personal Income
Current-dollar personal income increased $80.7 billion in the third quarter, compared with an increase of $82.9 billion in the second. Personal tax and nontax payments increased $18.2 billion, compared with an increase of $23.5 billion.
Disposable personal income increased $62.5 billion in the third quarter, compared with an increase of $59.4 billion in the second. Real disposable personal income increased $37.0 billion, compared with an increase of $39.8 billion.
Personal outlays increased $98.4 billion in the third quarter, compared with an increase of $28.2 billion in the second. Personal saving–disposable personal income less personal outlays–was $211.1 billion in the third quarter, compared with $247.0 billion in the second. The saving rate–saving as a percentage of disposable personal income–decreased from 4.2 percent in the second quarter to 3.6 percent in the third.
Current-Dollar GDP
Current-dollar GDP–the market value of the nation's output of goods and services–increased 4.9 percent, or $97.4 billion, in the third quarter. In the second quarter, current-dollar GDP increased 5.2 percent, or $100.7 billion.
October 31, 1997U.S. Department of Commerce
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