GDP and the Economy

Third Estimates for the Third Quarter of 2022

January 13, 2023

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Real gross domestic product (GDP) increased at an annual rate of 3.2 percent in the third quarter of 2022, according to the “third” estimates of the National Income and Product Accounts (NIPAs) (chart 1 and table 1).1 In the second quarter, real GDP decreased 0.6 percent. With the third estimate, real GDP growth was revised up 0.3 percentage point from the second estimate, issued last month.

Chart 1. Real GDP: Percent Change from Preceding Quarter

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Chart 2. Real GDP: Contributions to the Percent Change in 2022:Q3

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The upturn in real GDP in the third quarter, compared to the second quarter, primarily reflected accelerations in nonresidential fixed investment and consumer spending, a smaller decrease in private inventory investment, and upturns in state and local government as well as federal government spending that were partly offset by a larger decrease in residential fixed investment. Imports turned down. For more details, including source data, refer to the “Technical Note.”

The 3.2 percent increase in real GDP reflected increases in exports, consumer spending, nonresidential fixed investment, state and local government spending, and federal government spending that were partly offset by decreases in residential fixed investment and private inventory investment. Imports, which are a subtraction in the calculation of GDP, decreased (chart 2 and table 1).2

  • The increase in exports reflected increases in both goods and services. Within exports of goods, the leading contributors to the increase were industrial supplies and materials (notably, nondurable goods), “other” exports of goods, and nonautomotive capital goods. Within exports of services, the increase was led by “other” business services and travel.
  • Within consumer spending, an increase in services (led by health care and “other” services) was partly offset by a decrease in goods (led by motor vehicles and parts as well as food and beverages).
  • Within nonresidential fixed investment, increases in equipment and intellectual property products were partly offset by a decrease in structures.
  • The increase in state and local government spending was led by increases in investment in structures and in compensation of state and local government employees.
  • The increase in federal government spending was led by defense spending.
  • Within residential fixed investment, the leading contributors to the decrease were new single-family construction and brokers' commissions.
  • The decrease in private inventory investment was led by retail trade (mainly other general merchandise stores).
  • Within imports, the decrease primarily reflected a decrease in imports of goods (notably, consumer goods).

Real gross domestic income (GDI), the sum of incomes earned and costs incurred in the production of GDP, increased 0.8 percent in the third quarter, compared with a decrease of 0.8 percent in the second quarter. The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 2.0 percent in the third quarter, compared with a decrease of 0.7 percent in the second quarter.

Table 1. Real Gross Domestic Product (GDP) by Expenditure and Related Measures
[Seasonally adjusted at annual rates]
Line Series Share of current-dollar GDP (percent) Change from preceding period (percent) Contribution to percent change in real GDP (percentage points)
2022 2021 2022 2021 2022
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
1 Gross domestic product (GDP)1 100.0 7.0 −1.6 −0.6 3.2 7.0 −1.6 −0.6 3.2
2 Personal consumption expenditures 68.2 3.1 1.3 2.0 2.3 2.14 0.91 1.38 1.54
3 Goods 23.3 2.3 −0.1 −2.6 −0.4 0.55 −0.02 −0.61 −0.08
4 Durable goods 8.5 5.1 7.6 −2.8 −0.8 0.44 0.64 −0.24 −0.07
5 Nondurable goods 14.7 0.7 −4.4 −2.5 −0.1 0.12 −0.66 −0.37 −0.01
6 Services 44.9 3.5 2.1 4.6 3.7 1.58 0.93 1.99 1.63
7 Gross private domestic investment 17.8 32.0 5.4 −14.1 −9.6 5.14 0.98 −2.83 −1.80
8 Fixed investment 17.5 0.6 4.8 −5.0 −3.5 0.12 0.83 −0.92 −0.62
9 Nonresidential 13.2 1.1 7.9 0.1 6.2 0.17 0.98 0.01 0.80
10 Structures 2.5 −12.7 −4.3 −12.7 −3.6 −0.35 −0.11 −0.34 −0.09
11 Equipment 5.3 1.6 11.4 −2.0 10.6 0.10 0.55 −0.11 0.53
12 Intellectual property products 5.4 8.1 10.8 8.9 6.8 0.42 0.54 0.46 0.36
13 Residential 4.3 −1.1 −3.1 −17.8 −27.1 −0.05 −0.15 −0.93 −1.42
14 Change in private inventories 0.3 --- --- --- --- 5.01 0.15 −1.91 −1.19
15 Net exports of goods and services −3.5 --- --- --- --- −0.16 −3.13 1.16 2.86
16 Exports 11.9 23.5 −4.6 13.8 14.6 2.37 −0.53 1.51 1.65
17 Goods 8.3 23.4 −7.2 15.5 17.8 1.62 −0.58 1.18 1.38
18 Services 3.6 23.6 1.6 9.9 7.5 0.74 0.06 0.33 0.26
19 Imports 15.4 18.6 18.4 2.2 −7.3 −2.53 −2.60 −0.35 1.21
20 Goods 12.7 19.6 20.4 −0.4 −8.6 −2.20 −2.38 0.05 1.19
21 Services 2.7 14.0 9.1 16.6 −0.8 −0.33 −0.22 −0.41 0.02
22 Government consumption expenditures and gross investment 17.5 −1.0 −2.3 −1.6 3.7 −0.16 −0.40 −0.29 0.65
23 Federal 6.4 0.0 −5.3 −3.4 3.7 0.01 −0.36 −0.22 0.24
24 National defense 3.6 −5.3 −8.5 1.4 4.7 −0.20 −0.33 0.05 0.17
25 Nondefense 2.8 7.4 −1.1 −9.2 2.5 0.21 −0.03 −0.28 0.07
26 State and local 11.0 −1.6 −0.4 −0.6 3.7 −0.17 −0.04 −0.06 0.41
Addenda:
27 Gross domestic income (GDI)2 --- 6.7 0.8 −0.8 0.8 --- --- --- ---
28 Average of GDP and GDI --- 6.8 −0.4 −0.7 2.0 --- --- --- ---
29 Final sales of domestic product --- 1.9 −1.8 1.3 4.5 --- --- --- ---
30 Goods 31.7 18.6 −5.4 −3.0 7.3 5.52 −1.76 −0.96 2.28
31 Services 59.9 3.2 1.0 3.1 3.9 1.91 0.57 1.83 2.30
32 Structures 8.4 −5.2 −4.9 −15.3 −14.6 −0.47 −0.44 −1.44 −1.34
  1. The GDP estimates under the contribution columns are also percent changes.
  2. GDI is deflated by the implicit price deflator for GDP.

Note. Percent changes are from National Income and Product Account (NIPA) tables 1.1.1 and 1.2.1, contributions are from NIPA tables 1.1.2 and 1.2.2, and shares are from NIPA table 1.1.10 or are calculated from NIPA table 1.2.5.

The third estimate of GDP includes estimates of GDP by industry, or value added—a measure of an industry's contribution to GDP. In the third quarter, private services-producing industries increased 4.9 percent, government increased 0.6 percent, and private goods-producing industries decreased 1.3 percent (chart 3 and table 2). Overall, 16 of 22 industry groups contributed to the third-quarter increase in real GDP (chart 4).

  • Within private services-producing industries, the leading contributors to the increase were information; professional, scientific, and technical services; and real estate and rental and leasing. Notable offsets include decreases in utilities and in finance and insurance.
  • The increase in government reflected an increase in state and local government that was partly offset by a decrease in federal government.
  • Within private goods-producing industries, the decrease was led by construction, which was partly offset by an increase in mining.
Chart 3. Real GDP by Sector: Percent Change from Preceding Period

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Chart 4. Contributions to Percent Change in Real GDP by Industry Group, 2022:Q3

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Table 2. Real Gross Domestic Product by Industry Group
[Seasonally adjusted at annual rates]
Line Series Share of current-dollar GDP (percent) Change from preceding period (percent) Contribution to percent change in real GDP (percentage points)
2022 2021 2022 2021 2022
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
1 Gross domestic product (GDP)1 100.0 7.0 −1.6 −0.6 3.2 7.0 −1.6 −0.6 3.2
2 Private industries 88.4 7.9 −2.0 −0.6 3.6 6.90 −1.80 −0.57 3.17
3 Agriculture, forestry, fishing, and hunting 1.2 4.4 0.1 −12.8 −1.7 0.03 0.00 −0.15 −0.02
4 Mining 2.0 −13.4 −13.7 −0.2 27.0 −0.03 −0.25 0.00 0.50
5 Utilities 1.8 −7.9 8.2 1.0 −16.0 −0.12 0.13 0.02 −0.31
6 Construction 3.9 −13.2 −1.6 −19.2 −17.8 −0.57 −0.06 −0.84 −0.77
7 Manufacturing 10.9 14.2 −3.1 −8.5 0.5 1.47 −0.34 −0.97 0.06
8 Durable goods 6.0 15.8 1.2 −4.1 −0.5 0.86 0.07 −0.25 −0.03
9 Nondurable Goods 4.9 12.3 −8.0 −13.4 1.6 0.61 −0.41 −0.72 0.08
10 Wholesale trade 6.3 6.6 0.2 −6.8 6.1 0.40 0.01 −0.45 0.38
11 Retail trade 5.7 7.0 −14.8 1.4 6.8 0.43 −0.93 0.08 0.39
12 Transporation and warehousing 3.2 8.0 −10.7 2.4 10.9 0.23 −0.35 0.07 0.33
13 Information 5.5 16.3 −2.3 1.5 17.3 0.86 −0.13 0.08 0.88
14 Finance, insurance, real estate, rental, and leasing 20.1 8.1 −1.1 1.9 1.1 1.62 −0.23 0.39 0.22
15 Finance and insurance 7.8 9.2 −5.7 2.1 −2.7 0.73 −0.48 0.17 −0.21
16 Real estate and rental and leasing 12.3 7.5 2.0 1.8 3.5 0.89 0.25 0.22 0.43
17 Professional and business services 13.1 13.6 3.3 4.2 5.7 1.68 0.43 0.54 0.72
18 Professional, scientific, and technical services 7.9 10.3 0.4 3.3 7.8 0.78 0.03 0.26 0.59
19 Management of companies and enterprises 1.8 20.7 0.9 8.1 4.6 0.36 0.02 0.15 0.08
20 Administrative and waste management services 3.3 17.5 12.0 4.1 1.4 0.54 0.38 0.14 0.05
21 Educational services, health care, and social assistance 8.4 5.5 3.1 2.7 5.5 0.47 0.26 0.23 0.45
22 Educational services 1.1 5.3 5.1 −4.1 5.6 0.06 0.06 −0.05 0.06
23 Health care and social assistance 7.2 5.6 2.8 3.8 5.4 0.41 0.20 0.27 0.39
24 Arts, entertainment, recreation, accomodation, and food services 4.2 9.5 −8.8 10.6 7.3 0.38 −0.38 0.41 0.29
25 Arts, entertainment, and recreation 1.1 33.7 −0.8 19.2 26.1 0.30 −0.01 0.18 0.25
26 Accommodation and food services 3.1 2.6 −11.4 7.9 1.4 0.08 −0.37 0.23 0.04
27 Other services, except government 2.0 3.2 2.0 1.2 2.5 0.06 0.04 0.03 0.05
28 Government 11.6 −0.2 1.8 −0.2 0.6 −0.02 0.21 −0.03 0.08
29 Federal 3.6 −1.2 0.4 −0.5 −1.5 −0.04 0.01 −0.02 −0.05
30 State and local 8.0 0.3 2.5 −0.1 1.6 0.02 0.20 −0.01 0.13
  Addenda:
31 Private goods-producing industries2 18.0 4.4 −3.7 −10.4 −1.3 0.90 −0.65 −1.96 −0.23
32 Private services-producing industries3 70.4 8.7 −1.6 2.0 4.9 6.01 −1.15 1.40 3.40
  1. The GDP estimates under the contribution columns are also percent changes.
  2. Consists of agriculture, forestry, fishing and hunting; mining; construction; and manufacturing.
  3. Consists of utilities; wholesale trade; retail trade; transportation and warehousing; information; finance, insurance, real estate, rental, and leasing; professional and business services; educational services, health care, and social assistance; arts, entertainment, recreation, accommodation, and food services; and other services, except government.

Note. Percent changes are from these GDP by industry tables: “Value Added by Industry as a Percentage of Gross Domestic Product,” “Percent Changes in Chain-Type Quantity Indexes for Value Added by Industry,” and “Contributions to Percent Change in Real Gross Domestic Product by Industry.”

Real gross output—principally a measure of an industry's sales or receipts, which includes sales to final users in the economy (GDP) and sales to other industries (intermediate inputs)—increased 2.5 percent in the third quarter (chart 5 and table 3). Private services-producing industries increased 3.0 percent, private goods-producing industries increased 1.2 percent, and government increased 2.3 percent. Overall, 18 of 22 industry groups contributed to the increase in real gross output.

Chart 5. Real Gross Output by Sector: Percent Change from Preceding Period

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Table 3. Real Gross Output by Industry Group
[Seasonally adjusted at annual rates]
Line Series Change from preceding period (percent)
2021 2022
Q4 Q1 Q2 Q3
1 All industries 3.9 2.4 1.7 2.5
2 Private industries 4.3 2.5 1.8 2.6
3 Agriculture, forestry, fishing, and hunting −1.9 −1.6 −3.7 1.1
4 Mining 6.9 6.3 6.2 9.4
5 Utilities −2.9 10.9 7.1 −5.3
6 Construction −7.7 −6.3 −13.6 −10.8
7 Manufacturing 5.3 0.5 −0.8 3.9
8 Durable goods 7.3 2.9 5.9 7.2
9 Nondurable goods 3.3 −2.0 −7.1 0.6
10 Wholesale trade 5.4 13.8 −2.2 −1.5
11 Retail trade 1.9 0.8 2.8 1.9
12 Transporation and warehousing 14.5 0.2 10.1 5.4
13 Information 8.1 10.8 5.8 2.8
14 Finance, insurance, real estate, rental, and leasing 2.8 0.6 0.1 3.7
15 Finance and insurance −1.5 −4.1 3.1 8.8
16 Real estate and rental and leasing 6.3 4.2 −2.0 0.0
17 Professional and business services 9.6 5.5 6.2 3.4
18 Professional, scientific, and technical services 7.4 5.7 5.4 7.7
19 Management of companies and enterprises 17.8 1.2 3.5 2.5
20 Administrative and waste management services 9.9 7.3 9.1 −4.3
21 Educational services, health care, and social assistance 3.1 1.4 1.5 3.4
22 Educational services 4.7 6.7 2.5 6.4
23 Health care and social assistance 2.8 0.7 1.4 3.0
24 Arts, entertainment, recreation, accomodation, and food services 3.0 −1.2 19.1 6.5
25 Arts, entertainment, and recreation 16.4 5.3 22.7 26.3
26 Accommodation and food services −0.3 −2.9 18.2 1.6
27 Other services, except government 0.1 2.1 −3.1 8.7
28 Government 0.3 1.1 0.8 2.3
29 Federal 1.4 −3.1 2.4 3.6
30 State and local −0.2 2.9 0.2 1.8
  Addenda:
31 Private goods-producing industries1 2.3 −0.6 −3.0 1.2
32 Private services-producing industries2 5.0 3.7 3.6 3.0
  1. Consists of agriculture, forestry, fishing and hunting; mining; construction; and manufacturing.
  2. Consists of utilities; wholesale trade; retail trade; transportation and warehousing; information; finance, insurance, real estate, rental, and leasing; professional and business services; educational services, health care, and social assistance; arts, entertainment, recreation, accommodation, and food services; and other services, except government.

Note. Percent changes are from the table Percent Changes in Chain-Type Quantity Indexes for Gross Output by Industry which is available through BEA's Interactive Data Application.

BEA's featured measure of inflation in the U.S. economy, the price index for gross domestic purchases (goods and services purchased by U.S. residents), increased 4.8 percent in the third quarter after increasing 8.5 percent in the second quarter (table 4 and chart 6). Price increases were widespread across all major expenditure categories and were led by increases in consumer goods and services.

  • Within goods, the leading contributors to the price increase were food and beverages for off-premises consumption (groceries), “other” nondurable goods (led by recreational items, pharmaceutical and other medical products, personal care products, and household supplies), and motor vehicles and parts (mainly new light trucks). These increases were partly offset by a decrease in the prices paid for gasoline and other energy goods (mainly motor vehicle fuels).
  • Within services, price increases were widespread across most categories. The leading contributor was housing and utilities (mainly the imputed rental of owner-occupied nonfarm housing). Prices for financial services and insurance decreased, primarily reflecting a decrease in prices paid for portfolio management and investment advice services.

Within gross domestic purchases, food prices increased 13.4 percent in the third quarter after increasing 14.7 percent in the second quarter. Prices for energy goods and services decreased 13.1 percent after increasing 53.6 percent. Gross domestic purchases prices excluding food and energy increased 5.0 percent after increasing 6.9 percent.

Consumer prices excluding food and energy, a measure of the “core” rate of inflation, increased 4.7 percent in the third quarter, the same increase as in the second quarter.

Chart 6. Prices for Gross Domestic Purchases

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Table 4. Prices for Gross Domestic Purchases
[Percent change at annual rates; based on seasonally adjusted index numbers (2012=100)]
Line Series Change from preceding period (percent) Contribution to percent change in gross domestic purchases prices (percentage points)
2021 2022 2021 2022
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
1 Gross domestic purchases1 6.8 8.1 8.5 4.8 6.8 8.1 8.5 4.8
2 Personal consumption expenditures 6.2 7.5 7.3 4.3 4.10 4.90 4.81 2.85
3 Goods 9.3 12.6 10.6 2.7 2.06 2.76 2.37 0.64
4 Durable goods 8.2 8.3 2.4 3.5 0.68 0.70 0.22 0.29
5 Nondurable goods 9.9 15.2 15.7 2.3 1.38 2.07 2.15 0.35
6 Services 4.6 4.9 5.6 5.2 2.04 2.13 2.44 2.22
7 Gross private domestic investment 8.8 9.9 9.9 7.6 1.49 1.77 1.76 1.30
8 Fixed investment 8.8 10.0 10.3 7.7 1.48 1.68 1.72 1.28
9 Nonresidential 7.7 6.9 8.5 7.6 0.94 0.87 1.06 0.94
10 Structures 22.8 16.7 17.5 20.1 0.52 0.39 0.40 0.45
11 Equipment 6.5 7.6 9.2 5.9 0.31 0.38 0.45 0.29
12 Intellectual property products 2.1 1.9 3.9 3.7 0.11 0.10 0.20 0.19
13 Residential 12.0 18.9 15.2 8.1 0.54 0.82 0.66 0.34
14 Change in private inventories --- --- --- --- 0.01 0.09 0.03 0.02
15 Government consumption expenditures and gross investment 7.2 8.7 11.6 3.6 1.22 1.45 1.90 0.62
16 Federal 4.3 5.7 6.0 4.8 0.28 0.36 0.38 0.30
17 National defense 4.5 6.6 7.5 2.7 0.16 0.23 0.26 0.10
18 Nondefense 4.2 4.5 4.1 7.6 0.12 0.13 0.12 0.20
19 State and local 9.0 10.6 15.0 2.9 0.94 1.09 1.52 0.32
Addenda:
  Gross domestic purchases:                
20 Food 8.8 11.2 14.7 13.4 0.42 0.54 0.68 0.60
21 Energy goods and services 33.8 43.6 53.6 −13.1 0.80 1.07 1.37 −0.43
22 Excluding food and energy 6.0 7.0 6.9 5.0 5.59 6.51 6.41 4.59
  Personal consumption expenditures:                
23 Food and beverages purchased for off-premises consumption 8.7 11.4 15.3 13.0 --- --- --- ---
24 Energy goods and services 33.9 43.4 52.7 −13.3 --- --- --- ---
25 Excluding food and energy 4.8 5.6 4.7 4.7 --- --- --- ---
26 Gross domestic product 6.8 8.3 9.0 4.4 --- --- --- ---
27 Exports of goods and services 6.2 17.3 20.0 −9.7 --- --- --- ---
28 Imports of goods and services 6.3 13.5 13.2 −4.1 --- --- --- ---
  1. The estimated prices for gross domestic purchases under the contribution columns are also percent changes.

Note. Most percent changes are from NIPA table 1.6.7; percent changes for PCE for food and energy goods and services and for PCE excluding food and energy are from NIPA table 2.3.7. Contributions are from NIPA table 1.6.8. Gross domestic product, export, and import prices are from NIPA table 1.1.7.

Measured in current dollars, profits from current production (corporate profits with the inventory valuation adjustment (IVA) and the capital consumption adjustment (CCAdj)) decreased $1.3 billion, less than one-tenth of one percent at a quarterly rate, in the third quarter after increasing $131.6 billion in the second quarter (table 5). Profits of domestic financial corporations decreased $1.8 billion, profits of domestic nonfinancial corporations increased $16.1 billion, and rest-of-the-world profits decreased $15.5 billion.

Estimates of corporate profits were affected by several settlements that were finalized in the third quarter. Settlements are recorded in the NIPAs on an accrual basis in the quarter when the settlement is finalized, regardless of when they are recorded on a company's financial statement. In the third quarter, the following settlements reduced corporate profits by approximately $2.3 billion ($9.2 billion at an annual rate):

  • Several broker-dealers and an affiliated investment adviser agreed to pay penalties and fines totaling approximately $1.3 billion ($5.2 billion at an annual rate) for violations of U.S. Securities and Exchange Commission regulatory requirements to maintain and preserve electronic communications.
  • Credit Suisse agreed to pay $495 million ($2.0 billion at an annual rate) to settle a case with the New Jersey Attorney General’s office related to residential mortgage-backed securities business.
  • Google agreed to pay $407 million ($1.6 billion at an annual rate) in fines and penalties levied by the Russian and Australian governments.
  • Navient (formerly Sallie Mae) agreed to pay $95 million ($0.4 billion at an annual rate) in restitution for borrowers who were steered into costly repayment plans and predatory loans.

The estimate of GDI was not impacted, because the settlements were recorded in the NIPAs as business current transfer payments to government and to persons, which offset the reductions to corporate profits.

Table 5. Corporate Profits
[Seasonally adjusted]
Line Series Billions of dollars (annual rate) Percent change from preceding quarter (quarterly rate)
Level Change from preceding quarter
2022 2021 2022 2021 2022
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
  Current production measures:                  
1 Corporate profits with IVA and CCAdj 3,000.0 22.4 3.7 131.6 −1.3 0.8 0.1 4.6 0.0
2 Domestic industries 2,553.2 11.4 −10.4 106.2 14.3 0.5 −0.4 4.4 0.6
3 Financial 462.5 1.6 −26.8 −46.0 −1.8 0.3 −5.0 −9.0 −0.4
4 Nonfinancial 2,090.7 9.8 16.4 152.2 16.1 0.5 0.9 7.9 0.8
5 Rest of the world 446.8 11.0 14.2 25.5 −15.5 2.7 3.3 5.8 −3.4
6 Receipts from the rest of the world 969.1 7.8 17.1 56.1 1.0 0.9 1.9 6.2 0.1
7 Less: Payments to the rest of the world 522.3 −3.2 2.9 30.6 16.5 −0.7 0.6 6.4 3.3
9 Less: Taxes on corporate income 457.0 42.9 65.1 −16.4 −21.6 11.1 15.1 −3.3 −4.5
10 Equals: Profits after tax 2,543.0 −20.5 −61.4 148.0 20.4 −0.8 −2.5 6.2 0.8
11 Net dividends 1,683.9 36.4 13.4 −3.1 −56.5 2.1 0.8 −0.2 −3.2
12 Undistributed profits from current production 859.0 −56.9 −74.8 151.2 76.9 −7.5 −10.6 24.0 9.8
13 Net cash flow with IVA 3,135.6 54.9 −14.6 116.4 181.6 2.0 −0.5 4.1 6.1
CCAdj
Capital consumption adjustment
IVA
Inventory valuation adjustment

Note. Levels of these and other profits series are shown in National Income and Product Account tables 1.12 and 6.16D.

Industry profits (corporate profits by industry with IVA) increased $35.3 billion, or 1.1 percent at a quarterly rate, in the third quarter after increasing $171.1 billion, or 5.6 percent, in the second quarter (table 6 and chart 7). Domestic profits increased $50.8 billion in the third quarter and primarily reflected an increase in wholesale trade that was partly offset by decreases in “other” nonfinancial industries and transportation and warehousing.

Profits after tax (without IVA and CCAdj)—BEA's profits measure that is conceptually most like the profits for companies in the Standard & Poor's 500 Index—decreased $152.3 billion in the third quarter.

Chart 7. Corporate Profits with Inventory Valuation Adjustment in 2022:Q3, Change from Preceding Quarter

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Table 6. Corporate Profits by Industry
[Seasonally adjusted]
Line Series Billions of dollars (annual rate) Percent change from preceding quarter (quarterly rate)
Level Change from preceding quarter
2022 2021 2022 2021 2022
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
  Industry profits:                  
1 Corporate profits with IVA 3,288.0 49.5 80.2 171.1 35.3 1.7 2.7 5.6 1.1
2 Domestic industries 2,841.2 38.5 66.1 145.6 50.8 1.5 2.6 5.5 1.8
3 Financial 555.8 5.3 −20.2 −41.0 3.4 0.9 −3.3 −6.9 0.6
4 Nonfinancial 2,285.3 33.2 86.3 186.6 47.4 1.7 4.4 9.1 2.1
5 Utilities 36.0 −1.0 2.6 1.7 8.1 −4.2 11.1 6.5 29.1
6 Manufacturing 635.7 57.2 33.2 68.7 18.9 12.5 6.5 12.5 3.1
7 Wholesale trade 229.8 5.7 14.3 −5.4 44.9 3.3 8.1 −2.8 24.3
8 Retail trade 312.0 −3.1 −1.2 10.2 4.6 −1.0 −0.4 3.4 1.5
9 Transportation and warehousing 121.6 1.9 −7.4 35.0 −2.7 2.0 −7.7 39.1 −2.2
10 Information 152.4 0.3 2.2 −9.9 0.6 0.2 1.4 −6.1 0.4
11 Other nonfinancial 797.8 −27.7 42.5 86.3 −26.8 −3.8 6.1 11.7 −3.3
12 Rest of the world 446.8 11.0 14.2 25.5 −15.5 2.7 3.3 5.8 −3.4
  Addenda:
13 Profits before tax (without IVA and CCAdj) 3,347.8 −23.4 137.7 193.3 −173.9 −0.7 4.3 5.8 −4.9
14 Profits after tax (without IVA and CCAdj) 2,890.8 −66.3 72.7 209.7 −152.3 −2.3 2.6 7.4 −5.0
15 IVA −59.8 73.0 −57.5 −22.2 209.2 --- --- --- ---
16 CCAdj −288.0 −27.1 −76.5 −39.4 −36.6 --- --- --- ---
CCAdj
Capital consumption adjustment
IVA
Inventory valuation adjustment

Note. Levels of these and other profits series are shown in National Income and Product Account tables 1.12, 1.14, 1.15, and 6.16D.

The increase in third-quarter real GDP was revised up 0.3 percentage point from the second estimate, primarily reflecting upward revisions to consumer spending, nonresidential fixed investment, and state and local government spending that were partly offset by downward revisions to private inventory investment and exports (table 7).

  • Within consumer spending, an upward revision to services was partly offset by a downward revision to goods.
    • Within services, the leading contributors to the upward revision were “other” services (notably, social services and religious activities, professional services, and education) and financial services and insurance (specifically, imputed financial services as well as portfolio and investment advice services). The updated estimate primarily reflected new third-quarter U.S. Census Bureau (Census) Quarterly Services Survey (QSS) data as well as Federal Reserve Board tabulations of commercial banks' Call Reports.
    • Within goods, the downward revision was to durable goods (led by furnishings and durable household equipment), based primarily on revised Census Monthly Retail Trade Survey data.
  • Within nonresidential fixed investment, structures and intellectual property products were revised up.
    • Within structures, the leading contributors to the upward revision were manufacturing as well as commercial and health care, based primarily on revised August and September Value of Construction Put in Place Survey (VIP) data.
    • Within intellectual property products, the revision reflected upward revisions to research and development and to software, based primarily on new and updated QSS data.
  • The upward revision to state and local government spending was led by structures investment (notably, highway and street construction), based on revised VIP data.
  • Within private inventory investment, a downward revision to retail trade (notably, general merchandise stores) primarily reflected revised monthly Census inventory data.
  • For exports, the revised estimates reflected a downward revision to services (led by transport services) based on updated data from BEA’s International Transactions Accounts.
Table 7. Second and Third Estimates for the Third Quarter of 2022
[Seasonally adjusted at annual rates]
Line Series Change from preceding period (percent) Contribution to percent change in real GDP (percentage points)
Second estimate Third estimate Third estimate minus second estimate Second estimate Third estimate Third estimate minus second estimate
1 Gross domestic product (GDP)1 2.9 3.2 0.3 2.9 3.2 0.3
2 Personal consumption expenditures 1.7 2.3 0.6 1.18 1.54 0.36
3 Goods −0.2 −0.4 −0.2 −0.04 −0.08 −0.04
4 Durable goods −0.3 −0.8 −0.5 −0.03 −0.07 −0.04
5 Nondurable goods −0.1 −0.1 0.0 −0.01 −0.01 0.00
6 Services 2.7 3.7 1.0 1.22 1.63 0.41
7 Gross private domestic investment −9.1 −9.6 −0.5 −1.71 −1.80 −0.09
8 Fixed investment −4.1 −3.5 0.6 −0.74 −0.62 0.12
9 Nonresidential 5.1 6.2 1.1 0.66 0.80 0.14
10 Structures −6.9 −3.6 3.3 −0.18 −0.09 0.09
11 Equipment 10.7 10.6 −0.1 0.53 0.53 0.00
12 Intellectual property products 5.8 6.8 1.0 0.31 0.36 0.05
13 Residential −26.8 −27.1 −0.3 −1.40 −1.42 −0.02
14 Change in private inventories --- --- --- −0.97 −1.19 −0.22
15 Net exports of goods and services --- --- --- 2.93 2.86 −0.07
16 Exports 15.3 14.6 −0.7 1.72 1.65 −0.07
17 Goods 17.7 17.8 0.1 1.38 1.38 0.00
18 Services 9.9 7.5 −2.4 0.34 0.26 −0.08
19 Imports −7.3 −7.3 0.0 1.21 1.21 0.00
20 Goods −9.1 −8.6 0.5 1.25 1.19 −0.06
21 Services 1.5 −0.8 −2.3 −0.04 0.02 0.06
22 Government consumption expenditures and gross investment 3.0 3.7 0.7 0.53 0.65 0.12
23 Federal 3.4 3.7 0.3 0.22 0.24 0.02
24 National defense 4.4 4.7 0.3 0.16 0.17 0.01
25 Nondefense 2.1 2.5 0.4 0.06 0.07 0.01
26 State and local 2.8 3.7 0.9 0.31 0.41 0.10
  Addenda:
27 Final sales of domestic product 4.0 4.5 0.5 --- --- ---
28 Gross domestic income (GDI)2 --- 0.8 --- --- --- ---
29 Average of GDP and GDI --- 2.0 --- --- --- ---
30 Gross domestic purchases price index 4.7 4.8 0.1 --- --- ---
31 GDP price index 4.3 4.4 0.1 --- --- ---
  1. The GDP estimates under the contribution columns are also percent changes.
  2. GDI is deflated by the implicit price deflator for GDP.

 

  1. “Real” estimates are in chained (2012) dollars, and price indexes are chain-type measures. Each GDP estimate for a quarter (advance, second, and third) incorporates increasingly comprehensive and improved source data; for more information, see “The Revisions to GDP, GDI, and Their Major Components” in the January 2018 Survey of Current Business. Quarterly estimates are expressed at seasonally adjusted annual rates, which reflect a rate of activity for a quarter as if it were maintained for a year.
  2. In this article, “consumer spending” refers to “personal consumption expenditures,” “inventory investment” refers to “change in private inventories,” and “government spending” refers to “government consumption expenditures and gross investment.”