Archive for September, 2012

Real Consumer Spending Slows in August

Published September 28, 2012 BEA News , Personal Income Leave a Comment
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Personal income increased 0.1 percent in August, the same increase as in July.

Wages and salaries, the largest component of personal income, increased 0.1 percent in August after increasing 0.1 percent in July. Government social benefits to persons turned down in August.

Current-dollar disposable personal income (DPI), after-tax income, increased 0.1 percent in August, the same increase as in July.
Real DPI, income adjusted for taxes and inflation, decreased 0.3 percent in August after increasing 0.1 percent in July.

Real consumer spending, spending adjusted for price changes, increased 0.1 percent in August after increasing 0.4 percent in July. Spending on nondurable goods rose 0.3 percent after increasing 0.6 percent, while spending on services decreased 0.1 after increasing 0.3.

PCE prices increased 0.4 percent in August after remaining flat in July. Excluding food and energy, the PCE price index increased 0.1 percent, the same as in July.

Personal saving rate
Personal saving as a percent of DPI was 3.7 percent in August, compared with 4.1 percent
in July.

GDP Growth Slows in Second Quarter

Published September 27, 2012 BEA News , Corporate Profits , GDP Leave a Comment
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Real gross domestic product (GDP) rose 1.3 percent in the second quarter of 2012 after rising 2.0 percent in the first quarter, according to the third estimate released today by the Bureau of Economic Analysis. The second quarter growth rate was revised down from the second estimate released in August.

Second-quarter highlights

• Consumer spending decelerated, reflecting a downturn in durable goods, mainly in autos.
• Business investment slowed, led by a downturn in spending for power and communication structures.
• Residential housing also slowed in the second quarter.

Offsetting these reductions in real GDP growth were smaller decreases in federal government spending and in state and local government spending as well as a step-up in exports.

Revisions to GDP
The downward revision to second-quarter real GDP growth reflected a downward revision to inventories, mainly to farm inventories, which were revised down due to this summer’s severe heat and drought. In addition, consumer spending for services was revised down, reflecting a downward revision to finance and insurance. Exports was revised down as well.

Personal income and saving
Real disposable personal income (DPI), which adjusts personal income for taxes and inflation, rose 3.1 percent in the second quarter, compared with 3.7 percent in the first quarter. The personal saving rate—personal saving as a percentage of DPI—rose to 4.0 percent from 3.6 percent.

Corporate profits
Second-quarter corporate profits turned up, rising 1.1 percent at a quarterly rate, following a 2.7 percent decline in the first quarter. Second-quarter nonfinancial profits rose 2.6 percent, and financial profits fell 9.3 percent. Profits from the rest of the world rose 8.3 percent in the second quarter, reflecting a 1.6 percent increase in receipts and a 10.3 percent decline in payments.

For more, here’s the full report.

State Personal Income: Second Quarter 2012

Published September 25, 2012 BEA News , State Personal Income Leave a Comment
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State personal income growth slowed to 1.0 percent in the second quarter of 2012 from 1.7 percent in the first quarter. Growth slowed in 39 states plus the District of Columbia, accelerated in 10, and was unchanged in Nevada. Personal income growth ranged from 2.1 percent in North Dakota to 0.4 percent in New Mexico. Inflation, as measured by the national price index for personal consumption expenditures, slowed to 0.2 percent in the second quarter from 0.6 percent in the first quarter.

For more information about state personal income, read the full report.

Guam’s Economy Grew 1.2 Percent in 2010

Published September 24, 2012 BEA News Leave a Comment
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The economy of Guam grew 1.2 percent in 2010, according to new data from the Bureau of Economic Analysis (BEA). The growth in real gross domestic product (GDP) largely reflected increases in territorial and federal government spending, along with a shrinking territorial trade deficit.

GDP offers the most comprehensive picture of the territory’s economy. Although more timely indicators like the consumer price index, unemployment, and visitor arrivals are available, GDP looks at all aspects of Guam’s economy, including prices, output, consumer spending, and trade.

For the first time, BEA calculated estimates of GDP by industry, compensation by industry, and detailed consumer spending for the territory. BEA also revised previous estimates for 2002 to 2009.

The 1.2 percent increase in 2010 followed a 1.1 percent gain in 2009 and compares with 2.4 percent growth for the United States as a whole in 2010.

The pickup in territorial government spending reflected more spending on building projects, including the construction of a landfill, as well as more compensation for territorial government employees. The increase in federal government spending reflected increased economic activity by Department of Defense employees.

The improved trade balance contributed 1.1 percentage points to overall growth. Imports declined more than exports, narrowing the trade deficit. Exports add to GDP, while imports subtract from it.

Real consumer spending in Guam declined 3.3 percent in 2010.

GDP by industry and compensation by industry
Taken together, private industries subtracted 0.14 percentage point from overall growth in 2010, while government contributed 1.3 percentage points.

In 2010, the federal government—including a large U.S. military presence—accounted for 30 percent of economic activity in Guam. Federal employee compensation accounted for $952 million of the territory’s total $3.0 billion in employee compensation.

Among private industries, construction contributed 0.49 percentage point to economic growth in 2010, the new estimates show. The accommodations and amusement industry, including hotel and food services—along with other tourism-related services—contributed to overall growth for the first time since 2004.

BEA plans to release estimates for 2011 in the spring of 2013. You can read the latest news release and tables here.

Travel and Tourism Spending Increases

Published September 19, 2012 BEA News , Travel and Tourism Leave a Comment
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Inflation-adjusted spending on travel and tourism increased at an annual rate of 2.1 percent in the second quarter of the year, the Bureau of Economic Analysis reports. This was slower than the 4.9 percent growth rate in the first quarter. Still, travel and tourism spending outpaced growth in the total U.S. economy. U.S. gross domestic product rose at a 1.7 percent pace in the second quarter after a 2.0 percent growth rate in the first quarter.

The second-quarter increase was largely driven by an 8.7 percent annualized rise in real tourism spending on transportation-related items. That followed a 3.5 percent growth rate in the first quarter.

Meanwhile, spending on passenger air fares dropped at a rate of 3.6 percent in the second quarter after increasing at a 9.8 percent pace in the first quarter. Inflation-adjusted spending on lodging grew at a rate of 3.8 percent in the second quarter, slower than the first quarter’s 5.9 percent pace.

Overall, growth in prices for travel and tourism goods and services slowed. Prices increased at a rate of 0.9 percent in the second quarter after rising at a pace of 6.2 percent in the first 3 months of the year. The slowdown mainly reflected a decline in gasoline prices, which also lowered prices for transportation-related commodities. Prices for passenger air fares also decelerated, reflecting a decline in fuel costs. In contrast, prices for lodging accelerated.

Total employment in the travel and tourism industries increased at a 1 percent annualized rate in the second quarter to more than 7.6 million jobs. That followed a 2.6 percent growth rate in the first quarter. By comparison, overall U.S. employment increased 1.0 in the second quarter after increasing 2.1 percent in the first quarter.

Hotel and restaurant workers showed the biggest upturn, growing at a 2.1 percent pace in the second quarter after a 0.3 percent growth rate in the first quarter. Employment in recreation and entertainment fell at a 3.2 percent pace in the second quarter, in contrast to a 4.3 percent growth rate in the prior period . 

To learn more about travel and tourism spending read the full report.

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