Real gross domestic product (GDP) increased at an annual rate of 2.9 percent in the third quarter of 2022, according to the “second” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP had decreased by 0.6 percent.
The GDP estimate released today is based on a more complete source of data than were available for the “advance” estimate issued last month. In the advance estimate, the increase in real GDP was 2.6 percent.
The second estimate primarily reflected upward revisions to consumer spending and nonresidential fixed investment that were partly offset by a downward revision to private inventory investment. Imports, which are a subtraction in the calculation of GDP, decreased more than previously estimated.
The increase in real GDP reflected increases in exports, consumer spending, nonresidential fixed investment, state and local government spending, and federal government spending, which were partly offset by decreases in residential fixed investment and private inventory investment. Imports decreased in the third quarter of 2022.
Gross Domestic Income and Corporate Profits
Real gross domestic income (GDI) increased 0.3 percent in the third quarter, in contrast to a decrease of 0.8 percent in the second quarter (revised). The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 1.6 percent in the third quarter, in contrast to a decrease of 0.7 percent (revised) in the second quarter.
Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) decreased $31.6 billion in the third quarter, in contrast to an increase of $131.6 billion in the second quarter.
Profits of domestic financial corporations decreased $32.9 billion in the third quarter, compared with a decrease of $46.0 billion in the second quarter. Profits of domestic nonfinancial corporations increased $6.1 billion, compared with an increase of $152.2 billion. Rest-of-the-world profits decreased $4.7 billion, in contrast to an increase of $25.5 billion. In the third quarter, receipts increased $3.1 billion, and payments increased $7.8 billion.