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

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

Economic Analysis technical note for the third release of third quarter 

U.S. GDP released by the Commerce Department: 

Sources of Revision to Real GDP

     With the third estimate, real GDP increased 3.2 percent (annual 

rate) in the third quarter of 2017, a downward revision of 0.1 

percentage point from the second estimate.  The downward revision to the 

percent change in real GDP primarily reflected a downward revision to 

consumer spending that was partly offset by an upward revision to state 

and local government spending. 

     - The downward revision to consumer spending was more than 

accounted for by a downward revision to services that was partly offset 

by an upward revision to goods. The downward revision to services was 

primarily in recreation services, based on newly available Quarterly 

Services Survey (QSS) data from the Census Bureau, and in transportation 

services, based on newly available air passenger revenue from the 

Department of Transportation as well as newly available QSS data. 

     - The upward revision to state and local government spending was 

primarily accounted for by an upward revision to structures, reflecting 

revised Value of Construction Put in Place data for August and September 

from the Census Bureau. 

Gross Domestic Income and Corporate Profits

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

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

of GDP, increased 2.0 percent in the third quarter, 0.5 percentage point 

lower than the previous estimate. 

     Profits from current production increased $90.2 billion, or 4.3 

percent (quarterly rate), in the third quarter. The downward revision of 

$1.4 billion reflects revised Quarterly Financial Report data from the 

Census Bureau and compilations of publicly available corporate financial 

statements.  Domestic profits of financial corporations increased $47.8 

billion, domestic profits of nonfinancial corporations increased $10.4 

billion, and rest-of-the-world profits increased $32.0 billion. 

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

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