Gross Domestic Product
Gross Domestic Product
Gross Domestic Product
03/25/2011 - 8:30am
Real gross domestic product (GDP) grew at an annual rate of 3.1% in the fourth quarter of 2010, according to today’s third estimate. This follows a growth rate of 2.6% in the third quarter. Real GDP grew 2.9% in 2010 overall. Corporate profits grew 2.3% (non-annualized) in the fourth quarter of 2010 and grew 29.2% in 2010 overall.
GDP Revised Up; Corporate Profits Bouncing Back
As GDP releases go, this one doesn’t garner much attention because of the limited amount of new information. The new information that merits some discussion includes revisions and profits. First up, revisions. GDP growth was revised up from 2.8 percent at an annual rate to 3.1 percent. How large is the typical revision? 0.3 percentage point, so today’s revision is of average size. Also, if you recall last month, the numbers were revised down by 0.4 percentage point. What does all of this mean? It means that the economy was growing at about a 3 percent annual rate at the end of last year, and today’s revision doesn’t alter the fundamental view of what is happ
Corporate Profits and Industry Performance
A closely watched component of tomorrow’s GDP release by the U.S. Commerce Department’s Bureau of Economic Analysis (BEA) will be corporate profits. Corporate profits receive lots of attention for a variety of reasons. One of those reasons is that corporate profits touch many of us through the linkage between profits (and future expected profits) and stock prices, as those stock prices affect the value of our 401k and other retirement plans.
Gross Domestic Product
02/25/2011 - 8:30am
Real gross domestic product (GDP) grew at an annual rate of 2.8 percent in the fourth quarter of 2010, according to today’s preliminary estimate. This follows a growth rate of 2.6 percent in the third quarter.