Text: Commerce Dept Tech Note On 3Q US GDP - Second Release>

     WASHINGTON (MNI) - The following is the text of a Bureau of 

Economic Analysis technical note for the second release of third quarter 

U.S. GDP released by the Commerce Department: 

Sources of Revision to Real GDP

Real GDP increased 3.3 percent (annual rate) in the third quarter 

of 2017, an upward revision of 0.3 percentage point from the "advance" 

estimate. The revision primarily reflected upward revisions to 

nonresidential fixed investment, state and local government spending, 

and private inventory investment. 

*  The revision to nonresidential fixed investment reflected upward 

revisions to equipment (mainly transportation equipment) and to 

intellectual property products (specifically software) that were partly 

offset by a downward revision to structures. 

     o  The revision to equipment reflected revised export and import 

data for August and newly available data for September from BEAs 

International Transactions Accounts. 

     o  The revision to software reflected newly available data from the 

Census Bureaus Advance Quarterly Services Report. 

     o  The revision to structures reflected revised and newly available 

data from the Census Bureaus Value of Construction Put in Place survey. 

*  The revision to state and local government spending primarily 

reflected an upward revision to gross investment in structures based on 

revised and newly available data from the Census Bureaus Value of 

Construction Put in Place survey. 

*  The revision to private inventory investment reflected an upward 

revision to manufacturing industries based on revised and newly 

available book value data from the Census Bureau's Manufacturers' 

Shipments, Inventories, and Orders survey. 

Gross Domestic Income and Corporate Profits

Real gross domestic income (GDI), which measures the output of the 

economy as the incomes earned and costs incurred in the production of 

goods and services (as measured by GDP), increased 2.5 percent in the 

third quarter. The average of real GDP and real GDI increased 2.9 

percent. 

Profits from current production increased $91.6 billion, or 4.3 percent 

(quarterly rate), in the third quarter. Domestic profits of financial 

corporations increased $60.6 billion, domestic profits of nonfinancial 

corporations increased $12.5 billion, and rest-of-the-world profits 

increased $18.6 billion. 

Revisions to Wages and Salaries in the Second Quarter

In addition to presenting revised estimates for the third quarter, 

today's release presents revised estimates of second-quarter wages and 

salaries, personal taxes, and contributions for government social 

insurance. Wages and salaries are now estimated to have increased $63.1 

billion in the second quarter of 2017, a downward revision of $26.5 

billion. These estimates reflect revised wage and salary tabulations for 

the second quarter from the BLS Quarterly Census of Employment and 

Wages. Real GDI is now estimated to have increased 2.3 percent in the 

second quarter, a downward revision of 0.6 percentage point. 

     ** MNI Washington Bureau (202) 371-2121 ** 

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