THE PRIMARY SOURCE
Read the release
Historical release narrative reproduced from the official public-domain U.S. Bureau of Economic Analysis source. Statistical tables, charts, standard technical appendices and administrative material are omitted; formatting is adapted for reading. Figures retain the release's original vintage and may have been revised. Consult the linked source for the complete release and current data.
Real gross domestic product -- the value of the goods and services produced by the nation's economy less the value of the goods and services used up in production, adjusted for price changes -- increased at an annual rate of 1.4 percent in the fourth quarter of 2015, according to the "third" estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 2.0 percent.
The GDP estimate released today is based on more complete source data than were available for the "second" estimate issued last month. In the second estimate, the increase in real GDP was 1.0 percent. With this third estimate for the fourth quarter, the general picture of economic growth remains largely the same; personal consumption expenditures (PCE) increased more than previously estimated (see "Revisions" on page 2).
The increase in real GDP in the fourth quarter reflected positive contributions from PCE, residential fixed investment, and federal government spending that were partly offset by negative contributions from nonresidential fixed investment, exports, private inventory investment, and state and local government spending. Imports, which are a subtraction in the calculation of GDP, decreased.
The deceleration in real GDP in the fourth quarter primarily reflected downturns in nonresidential fixed investment and in state and local government spending, a deceleration in PCE, and a downturn in exports that were partly offset by a smaller decrease in private inventory investment, a downturn in imports, and an acceleration in federal government spending.
Real gross domestic income (GDI), which measures the value of the production of goods and services in the United States as the costs incurred and the incomes earned in production, increased 0.9 percent in the fourth quarter, compared with an increase of 2.0 percent in the third. The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 1.1 percent in the fourth quarter, compared with an increase of 2.0 percent in the third.
_____ FOOTNOTE. Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise specified. Percent changes are calculated from unrounded data and are annualized. "Real" estimates are in chained (2009) dollars. Price indexes are chain-type measures.
Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 1.5 percent in the fourth quarter, compared with an increase of 2.2 percent in the third.
The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 0.4 percent in the fourth quarter, compared with an increase of 1.3 percent in the third. Excluding food and energy prices, the price index for gross domestic purchases increased 1.0 percent, compared with an increase of 1.3 percent.
Current-dollar GDP -- the market value of the goods and services produced by the nation's economy less the value of the goods and services used up in production -- increased 2.3 percent, or $104.6 billion, in the fourth quarter to a level of $18,164.8 billion. In the third quarter, current-dollar GDP increased 3.3 percent, or $146.5 billion.
Revisions
The upward revision to the percent change in real GDP primarily reflected upward revisions to personal consumption expenditures (PCE) and to exports that were partly offset by a downward revision to private inventory investment. For more information, see the Technical Note. For information on revisions, see "The Revisions to GDP, GDI, and Their Major Components."
2015 GDP
Real GDP increased 2.4 percent in 2015 (that is, from the 2014 annual level to the 2015 annual level), the same rate as in 2014.
The increase in real GDP in 2015 primarily reflected positive contributions from PCE, nonresidential fixed investment, residential fixed investment, private inventory investment, exports, and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased.
Comparing real GDP growth in 2015 with growth in 2014, real GDP increased 2.4 percent in both years, though there were offsetting movements in the components. Decelerations in nonresidential fixed investment and in exports and an acceleration in imports were offset by accelerations in PCE and in residential fixed investment, a smaller decrease in federal government spending, and accelerations in private inventory investment and in state and local government spending.
The price index for gross domestic purchases increased 0.4 percent in 2015, compared with an increase of 1.5 percent in 2014.
Current-dollar GDP increased 3.5 percent, or $598.9 billion, in 2015 to a level of $17,947.0 billion, compared with an increase of 4.1 percent, or $684.9 billion, in 2014.
During 2015 (that is, measured from the fourth quarter of 2014 to the fourth quarter of 2015), real GDP increased 2.0 percent, compared with an increase of 2.5 percent during 2014. The price index for gross domestic purchases increased 0.4 percent during 2015, compared with an increase of 1.2 percent during 2014.
Corporate Profits
Profits from current production
Profits from current production (corporate profits with inventory valuation adjustment (IVA) and capital consumption adjustment (CCAdj)) decreased $159.6 billion in the fourth quarter, compared with a decrease of $33.0 billion in the third.
Profits of domestic financial corporations decreased $24.0 billion in the fourth quarter, in contrast to an increase of $1.8 billion in the third. Profits of domestic nonfinancial corporations decreased $129.2 billion, compared with a decrease of $11.8 billion. The rest-of-the-world component of profits decreased $6.5 billion, compared with a decrease of $23.1 billion. This measure is calculated as the difference between receipts from the rest of the world and payments to the rest of the world. In the fourth quarter, receipts decreased $22.4 billion, and payments decreased $16.0 billion.
Taxes on corporate income decreased $32.2 billion in the fourth quarter, compared with a decrease of $6.9 billion in the third. Profits after tax with IVA and CCAdj decreased $127.4 billion, compared with a decrease of $26.2 billion.
Dividends decreased $15.1 billion in the fourth quarter, in contrast to an increase of $26.0 billion in the third. Undistributed profits decreased $112.2 billion, compared with a decrease of $52.2 billion. Net cash flow with IVA -- the internal funds available to corporations for investment -- decreased $101.6 billion, compared with a decrease of $35.1 billion.
The IVA and CCAdj are adjustments that convert inventory withdrawals and depreciation of fixed assets reported on a tax-return, historical-cost basis to the current-cost economic measures used in the national income and product accounts. The IVA increased $13.3 billion in the fourth quarter, compared with an increase of $35.9 billion in the third. The CCAdj increased $3.6 billion, in contrast to a decrease of $1.3 billion.
For the year 2015, profits from current production decreased $64.0 billion, in contrast to an increase of $35.6 billion in 2014. Profits of domestic financial corporations decreased $2.3 billion and profits of domestic nonfinancial corporations decreased $32.6 billion. The rest-of-the-world component of profits decreased $29.1 billion in 2015.
For the year 2015, taxes on corporate income increased $15.9 billion, compared with an increase of $45.0 billion in 2014. Profits after tax with IVA and CCAdj decreased $79.9 billion, compared with a decrease of $9.4 billion. Dividends increased $28.5 billion, in contrast to a decrease of $64.0 billion. Undistributed profits decreased $108.4 billion, in contrast to an increase of $54.6 billion.
Corporate profits with IVA
Profits of domestic financial corporations decreased $24.0 billion in the fourth quarter, in contrast to an increase of $2.5 billion in the third. Profits of domestic nonfinancial corporations decreased $132.7 billion, compared with a decrease of $11.1 billion. The fourth-quarter decrease in profits of nonfinancial corporations primarily reflected a decrease in manufacturing of nondurable goods, specifically petroleum and coal products.
For the year 2015, profits of domestic financial corporations increased $19.4 billion, in contrast to a decrease of $0.2 billion in 2014. Profits of domestic nonfinancial corporations increased $146.8 billion in 2015, compared with an increase of $36.8 billion. The 2015 increase in profits of domestic nonfinancial corporations was widespread across most industries. Notable offsets include decreases in manufacturing of petroleum and coal products and in utilities.
Gross value added of nonfinancial domestic corporate business
Real gross value added of nonfinancial corporations increased in the fourth quarter. Units profits from current production (profits per unit of real gross value added) decreased, reflecting increases in unit labor and nonlabor costs; unit prices were unchanged in the fourth quarter.
Source: U.S. Bureau of Economic Analysis · Original release Mar 25, 2016.
Archived Nov 11, 2026. Source reuse policy. Formatting has been adapted for reading; the source’s conclusions remain attributed to its publisher.