US Economy Stagnating With Lowest Labor Participation in 38 Years of 62.4% With 94.6 Million Americans Not In Labor Force and 7.9 Unemployed and Only 142,000 Jobs Created In September — Recession in 2016? — Videos

Posted on October 3, 2015. Filed under: American History, Articles, Banking, Blogroll, College, Communications, Congress, Constitution, Documentary, Economics, Education, Elections, Employment, Faith, Family, Federal Government, Federal Government Budget, Fiscal Policy, Food, Freedom, Friends, government spending, history, Illegal, Inflation, Internal Revenue Service (IRS), Law, Legal, liberty, Life, Links, Literacy, Macroeconomics, media, Microeconomics, Monetary Policy, Money, Money, People, Philosophy, Photos, Politics, Private Sector, Public Sector, Radio, Radio, Rants, Raves, Security, Strategy, Talk Radio, Taxation, Taxes, Unemployment, Unions, Video, War, Wealth, Welfare, Wisdom, Writing | Tags: , , , , , , , , , , , , , |

Project_1

The Pronk Pops Show Podcasts

Pronk Pops Show 546: October 2, 2015 

Pronk Pops Show 545: October 1, 2015 

Pronk Pops Show 544: September 30, 2015 

Pronk Pops Show 543: September 29, 2015 

Pronk Pops Show 542: September 28, 2015 

Pronk Pops Show 541: September 25, 2015 

Pronk Pops Show 540: September 24, 2015 

Pronk Pops Show 539: September 23, 2015 

Pronk Pops Show 538: September 22, 2015 

Pronk Pops Show 537: September 21, 2015 

Pronk Pops Show 536: September 18, 2015 

Pronk Pops Show 535: September 17, 2015 

Pronk Pops Show 534: September 16, 2015 

Pronk Pops Show 533: September 15, 2015  

Pronk Pops Show 532: September 14, 2015 

Pronk Pops Show 531: September 11, 2015

Pronk Pops Show 530: September 10, 2015 

Pronk Pops Show 529: September 9, 2015 

Pronk Pops Show 528: September 8, 2015 

Pronk Pops Show 527: September 4, 2015 

Pronk Pops Show 526: September 3, 2015  

Pronk Pops Show 525: September 2, 2015 

Pronk Pops Show 524: August 31, 2015  

Pronk Pops Show 523: August 27, 2015  

Pronk Pops Show 522: August 26, 2015 

Pronk Pops Show 521: August 25, 2015 

Pronk Pops Show 520: August 24, 2015 

Pronk Pops Show 519: August 21, 2015 

Pronk Pops Show 518: August 20, 2015  

Pronk Pops Show 517: August 19, 2015 

Pronk Pops Show 516: August 18, 2015

Pronk Pops Show 515: August 17, 2015

Pronk Pops Show 514: August 14, 2015

Pronk Pops Show 513: August 13, 2015

Pronk Pops Show 512: August 12, 2015

Pronk Pops Show 511: August 11, 2015

Pronk Pops Show 510: August 10, 2015

Pronk Pops Show 509: July 24, 2015

Pronk Pops Show 508: July 20, 2015

Pronk Pops Show 507: July 17, 2015

Pronk Pops Show 506: July 16, 2015

Pronk Pops Show 505: July 15, 2015

Pronk Pops Show 504: July 14, 2015

Pronk Pops Show 503: July 13, 2015

Pronk Pops Show 502: July 10, 2015

Pronk Pops Show 501: July 9, 2015

Pronk Pops Show 500: July 8, 2015

Pronk Pops Show 499: July 6, 2015

Pronk Pops Show 498: July 2, 2015

Pronk Pops Show 497: July 1, 2015

Story 1: US Economy Stagnating With Lowest Labor Participation in 38 Years of 62.4% With 94.6 Million Americans Not In Labor Force and 7.9 Unemployed and Only 142,000 Jobs Created In September — Recession in 2016? — Videos

gdp_large

sgs-emp

U.S. economy gains 142,000 jobs in September

Does the weak jobs report take a Fed rate hike off the table?

The weak September jobs report and the markets

RETAIL APOCALYPSE CONTINUES SALES WORSE SINCE 2009

The last time September Retail Sales growth was this weak was 2009, limping aimlessly out of the ‘Great Recession’. With a mere 0.9% year-over-year growth, Johnson-Redbook data seems to confirm what Reuters reports is looming – the weakest U.S. holiday sales season for retailers since the recession. Consultancy firm AlixPartners expects sales to grow 2.8-3.4% during the November-December shopping period compared with 4.4% in 2014, based on analyzing consumer spending trends so far this year, noting (myth-busting for permabulls) dollars saved at the pump are being directed to personal savings or on non-retail activities.

Bursting Oil Bubble Could Put US Back in Recession

Commodities Report: October 2, 2015

Keep U.S. Jobs Numbers Volatility in Perspective: Krueger

Bad Jobs Report Prediction Understandable Says ‘Superforecasting’ Author

October 2, 2015 Financial News – Business News – Stock Exchange – NYSE – Market News

Gold Webcast – Gold climbs on weak US jobs report

Before the Asia Bell: October 2, 2015

Peter Schiff: Minimum Wage Will Result In Mass Unemployment & Self Service

MARC FABER – World Economy Grinding to a Halt. Don’t Trade With Leverage

Thom Hartmann “The Crash of 2016”

Keiser Report: Market Wasteland (E817)

The September Jobs Report in 11 Charts

By JOSH ZUMBRUN , NICK TIMIRAOS and ERIC MORATH

The U.S. economy added 142,000 jobs in September, but there’s more to the monthly jobs report than the number of jobs added. The report provides a wealth of information about the demographics of unemployment—about who is unemployed and why—summarized in the following 11 charts.

Over the past three months the economy has added jobs at the slowest pace since February 2014. Employers were adding an average of more than 200,000 jobs each month since the spring of last year, but now that pace has slowed.

Similarly, the annual pace of job creation has eased in recent months after peaking above three million late last year.

As a result of the weaker gains in August and September, job creation in 2015 has fallen well off last year’s pace. However, the economy is still on track to post the second-best year for employment growth in the past decade.

Every measure of unemployment is declining this year. The broadest gauge, which includes part-timers who would prefer full-time employment and Americans too discouraged to look for a job, fell to 10% last month. That’s the lowest rate since May 2008.

The median unemployed worker has been without a job for 11.4 weeks. That’s substantially shorter than during the first few years of this economic recovery, but still high by historical standards.

The number of Americans working full-time has finally returned to its prerecession levels, though this doesn’t account for an increase in the overall population.

The labor-force participation rate—that is, the share of the population either working or looking for work—declined to the lowest rate since 1977. The employment-to-population ratio, that is, the share of the population with a job, fell to 59.2% from 59.4%.

Much of the reason for the decline in the labor force is simply that a growing number of baby boomers are choosing to retire. Among workers ages 25 to 54, labor-force participation and employment rates are higher. Among this group of workers, dubbed prime-age by labor market economists, labor-force participation fell to 80.6% from 80.7% last month.

People can be unemployed for a range of reasons—whether it’s entering the job market for the first time; re-entering after going to school, starting a family or caring for a relative; quitting an old job with no new one lined up; or losing a job, either on a temporary layoff or permanently. As the recovery has progressed, the share of the unemployed who lost their previous job has declined. A growing share of the unemployed are new entrant or re-entrants to the work force.

College graduates have a significantly lower unemployment rate, which was unchanged at 2.5% this month. High-school dropouts have significantly higher unemployment, which climbed to 7.9% this month from 7.7%.

The unemployment rate has continued to come down for men, women, whites, blacks and Hispanics. The gaps in the unemployment rate between men and women have mostly closed, but significant gaps remain between racial groups.

Corrections & Amplifications

Monthly employment gains in 2015 have averaged 198,000. An earlier version of the chart “Slower, But Still Solid,” incorrectly showed an average gain of 221,000 jobs. Also, the number of Americans working full-time increased in September using a three-month moving average. An earlier version of the chart “Working Longer” included data for July, August and September that didn’t use the three-month average, while the post incorrectly suggested the number of full-time workers according to that measure had declined in September. (Oct. 2, 2015).

http://blogs.wsj.com/economics/2015/10/02/the-september-jobs-report-in-11-charts/

U.S. job growth stumbles, raising doubts on economy

U.S. employers slammed the brakes on hiring over the last two months, raising new doubts the economy is strong enough for the Federal Reserve to raise interest rates by the end of this year.

Payrolls outside of farming rose by 142,000 last month and August figures were revised sharply lower to show only 136,000 jobs added that month, the Labor Department said on Friday.

That marked the smallest two-month gain in employment in over a year and could fuel fears that the China-led global economic slowdown is sapping America’s strength.

“You can’t throw lipstick on this pig of a report,” said Brian Jacobsen, a portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.

The weak job growth took Wall Street by surprise and U.S. stocks sold off while the dollar also weakened and yields for government bonds fell.

Bets on interest rate futures showed investors only saw a 30 percent chance of a Fed rate hike in December, down from just under 50 percent before the job report’s release.

“(With) a weak report here, in combination with some of the other weakness that we are seeing across the globe, the odds get dinged for December,” said Tom Porcelli, an economist at RBC Capital Markets.

Investors saw virtually no chance the Fed would end its near-zero interest rate policy at its only other scheduled meeting this year, to be held later in October. Futures prices indicated investors were betting the Fed would probably hike in March.

U.S. factories are feeling the global chill and shed 9,000 jobs in September after losing 18,000 in August, according to the Labor Department’s survey of employers.

“We saw events in China lead to some global financial turmoil and you’re seeing that in the data here,” White House chief economist Jason Furman told Reuters.

New orders received by U.S. factories fell 1.7 percent in August, the Commerce Department said in a separate report..

Paul Ryan, a top Republican lawmaker in the House of Representatives, said the weak turn in the economy should be a wake-up call for Washington to reform the national economy with new tax laws, free trade agreements and policies to get people off welfare. “This recovery continues to disappoint, but we can’t accept it as the new normal,” Ryan said.

The recent pace of job growth should have been enough to push the unemployment rate lower because only around 100,000 new jobs are needed a month to keep up with population growth.

But the jobless rate held steady at 5.1 percent. The unemployment rate is derived from a separate survey of households that showed 350,000 workers dropping out of the labor force last month, as well as a lower level of employment.

The share of the population in the work force, which includes people who have jobs or are looking for one, fell to 62.4 percent, the lowest level since 1977.

Average hourly wages fell by a cent to $25.09 during the month and were up only 2.2 percent from the same month in 2014, holding around the same levels seen all year and pointing to marginal inflationary pressures.

The report did have a few bright spots that might be welcomed by Fed chief Janet Yellen, who said last week the economy was doing well enough to warrant higher rates this year.

The number of workers with part-time jobs but who want more hours fell by 447,000 in September to 6.0 million.

Yellen has signaled that the elevated number of these workers points to hidden slack in the labor market that isn’t captured by the jobless rate. A measure of joblessness that includes these workers and is closely followed by the Fed fell to 10 percent, its lowest level since May 2008.

Economists polled by Reuters had expected job growth of 203,000 in September.

All told, revised estimates meant 59,000 fewer jobs were created in July and August than previously believed.

In another grim sign, the number of hours worked in the country fell 0.2 percent, raising the specter that some broader softness might have gripped the economy last month.

Some of the strongest headwinds on the U.S. economy come from the commodity sector, which has slowed in part because of weaker demand from China.

The price of oil has fallen nearly 50 percent over the last year, and U.S. mining payrolls, which include energy sector jobs, fell by 10,000 in September, the ninth straight month of declines.

http://www.reuters.com/article/2015/10/02/us-usa-economy-idUSKCN0RW08V20151002

Employment Situation Summary

Transmission of material in this release is embargoed until USDL-15-1912
8:30 a.m. (EDT) Friday, October 2, 2015

Technical information:
Household data: (202) 691-6378 • cpsinfo@bls.gov • www.bls.gov/cps
Establishment data: (202) 691-6555 • cesinfo@bls.gov • www.bls.gov/ces

Media contact: (202) 691-5902 • PressOffice@bls.gov


THE EMPLOYMENT SITUATION -- SEPTEMBER 2015


Total nonfarm payroll employment increased by 142,000 in September, and the
unemployment rate was unchanged at 5.1 percent, the U.S. Bureau of Labor
Statistics reported today. Job gains occurred in health care and information,
while mining employment fell.

Household Survey Data

In September, the unemployment rate held at 5.1 percent, and the number of
unemployed persons (7.9 million) changed little. Over the year, the unemployment
rate and the number of unemployed persons were down by 0.8 percentage point and
1.3 million, respectively. (See table A-1.)

Among the major worker groups, the unemployment rates for adult men (4.7 percent),
adult women (4.6 percent), teenagers (16.3 percent), whites (4.4 percent), blacks
(9.2 percent), Asians (3.6 percent), and Hispanics (6.4 percent) showed little
or no change in September. (See tables A-1, A-2, and A-3.)

The number of persons unemployed for less than 5 weeks increased by 268,000 to
2.4 million in September, partially offsetting a decline in August. The number
of long-term unemployed (those jobless for 27 weeks or more) was little changed
at 2.1 million in September and accounted for 26.6 percent of the unemployed.
(See table A-12.)

The civilian labor force participation rate declined to 62.4 percent in September;
the rate had been 62.6 percent for the prior 3 months. The employment-population
ratio edged down to 59.2 percent in September, after showing little movement for
the first 8 months of the year. (See table A-1.)

The number of persons employed part time for economic reasons (sometimes referred to
as involuntary part-time workers) declined by 447,000 to 6.0 million in September.
These individuals, who would have preferred full-time employment, were working part
time because their hours had been cut back or because they were unable to find a
full-time job. Over the past 12 months, the number of persons employed part time
for economic reasons declined by 1.0 million. (See table A-8.)

In September, 1.9 million persons were marginally attached to the labor force, down
by 305,000 from a year earlier. (The data are not seasonally adjusted.) These 
individuals were not in the labor force, wanted and were available for work, and
had looked for a job sometime in the prior 12 months. They were not counted as
unemployed because they had not searched for work in the 4 weeks preceding the
survey. (See table A-16.)

Among the marginally attached, there were 635,000 discouraged workers in September,
little changed from a year earlier. (The data are not seasonally adjusted.)
Discouraged workers are persons not currently looking for work because they believe
no jobs are available for them. The remaining 1.3 million persons marginally
attached to the labor force in September had not searched for work for reasons
such as school attendance or family responsibilities. (See table A-16.)

Establishment Survey Data

Total nonfarm payroll employment increased by 142,000 in September. Thus far in
2015, job growth has averaged 198,000 per month, compared with an average monthly
gain of 260,000 in 2014. In September, job gains occurred in health care and
information, while employment in mining continued to decline. (See table B-1.)

Health care added 34,000 jobs in September, in line with the average increase of
38,000 jobs per month over the prior 12 months. Hospitals accounted for 16,000 of
the jobs gained in September, and employment in ambulatory health care services
continued to trend up (+13,000).

Employment in information increased by 12,000 in September and has increased by
44,000 over the year.

Employment in professional and business services continued to trend up in September
(+31,000). Job growth has averaged 45,000 per month thus far in 2015, compared
with an average monthly gain of 59,000 in 2014. In September, job gains occurred
in computer systems design and related services (+7,000) and in legal services
(+5,000).

Retail trade employment trended up in September (+24,000), in line with its average
monthly gain over the prior 12 months (+27,000). In September, employment rose in
general merchandise stores (+10,000) and automobile dealers (+5,000).

Employment in food services and drinking places continued on an upward trend in
September (+21,000). Over the year, this industry has added 349,000 jobs.

Employment in mining continued to decline in September (-10,000), with losses
concentrated in support activities for mining (-7,000). Mining employment has
declined by 102,000 since reaching a peak in December 2014.

Employment in other major industries, including construction, manufacturing,
wholesale trade, transportation and warehousing, financial activities, and
government, showed little or no change over the month.

The average workweek for all employees on private nonfarm payrolls declined by
0.1 hour to 34.5 hours in September. The manufacturing workweek decreased by
0.2 hour to 40.6 hours, and factory overtime declined by 0.2 hour to 3.1 hours.
The average workweek for production and nonsupervisory employees on private
nonfarm payrolls decreased by 0.1 hour to 33.6 hours. (See tables B-2 and B-7.)

In September, average hourly earnings for all employees on private nonfarm
payrolls, at $25.09, changed little (-1 cent), following a 9-cent gain in August.
Hourly earnings have risen by 2.2 percent over the year. Average hourly earnings
of private-sector production and nonsupervisory employees were unchanged at
$21.08 in September. (See tables B-3 and B-8.)

The change in total nonfarm payroll employment for July was revised from +245,000
to +223,000, and the change for August was revised from +173,000 to +136,000. With
these revisions, employment gains in July and August combined were 59,000 less
than previously reported. Over the past 3 months, job gains have averaged 167,000
per month.

_____________
The Employment Situation for October is scheduled to be released on Friday,
November 6, 2015, at 8:30 a.m. (EST).

Employment Situation Summary Table A. Household data, seasonally adjusted

HOUSEHOLD DATA
Summary table A. Household data, seasonally adjusted

[Numbers in thousands]
Category Sept.
2014
July
2015
Aug.
2015
Sept.
2015
Change from:
Aug.
2015-
Sept.
2015

Employment status

Civilian noninstitutional population

248,446 250,876 251,096 251,325 229

Civilian labor force

155,845 157,106 157,065 156,715 -350

Participation rate

62.7 62.6 62.6 62.4 -0.2

Employed

146,607 148,840 149,036 148,800 -236

Employment-population ratio

59.0 59.3 59.4 59.2 -0.2

Unemployed

9,237 8,266 8,029 7,915 -114

Unemployment rate

5.9 5.3 5.1 5.1 0.0

Not in labor force

92,601 93,770 94,031 94,610 579

Unemployment rates

Total, 16 years and over

5.9 5.3 5.1 5.1 0.0

Adult men (20 years and over)

5.3 4.8 4.7 4.7 0.0

Adult women (20 years and over)

5.5 4.9 4.7 4.6 -0.1

Teenagers (16 to 19 years)

19.8 16.2 16.9 16.3 -0.6

White

5.1 4.6 4.4 4.4 0.0

Black or African American

11.0 9.1 9.5 9.2 -0.3

Asian

4.5 4.0 3.5 3.6 0.1

Hispanic or Latino ethnicity

7.0 6.8 6.6 6.4 -0.2

Total, 25 years and over

4.7 4.3 4.2 4.1 -0.1

Less than a high school diploma

8.3 8.3 7.7 7.9 0.2

High school graduates, no college

5.3 5.5 5.5 5.2 -0.3

Some college or associate degree

5.4 4.4 4.4 4.3 -0.1

Bachelor’s degree and higher

2.9 2.6 2.5 2.5 0.0

Reason for unemployment

Job losers and persons who completed temporary jobs

4,521 4,143 4,070 3,908 -162

Job leavers

816 843 790 780 -10

Reentrants

2,805 2,447 2,349 2,436 87

New entrants

1,094 826 850 831 -19

Duration of unemployment

Less than 5 weeks

2,372 2,488 2,095 2,363 268

5 to 14 weeks

2,495 2,257 2,374 2,218 -156

15 to 26 weeks

1,423 1,188 1,250 1,214 -36

27 weeks and over

2,951 2,180 2,187 2,104 -83

Employed persons at work part time

Part time for economic reasons

7,058 6,325 6,483 6,036 -447

Slack work or business conditions

4,165 3,828 3,841 3,569 -272

Could only find part-time work

2,528 2,213 2,242 2,134 -108

Part time for noneconomic reasons

19,579 19,891 19,760 19,971 211

Persons not in the labor force (not seasonally adjusted)

Marginally attached to the labor force

2,226 1,927 1,812 1,921

Discouraged workers

698 668 624 635

– Over-the-month changes are not displayed for not seasonally adjusted data.
NOTE: Persons whose ethnicity is identified as Hispanic or Latino may be of any race. Detail for the seasonally adjusted data shown in this table will not necessarily add to totals because of the independent seasonal adjustment of the various series. Updated population controls are introduced annually with the release of January data.


Employment Situation Summary Table B. Establishment data, seasonally adjusted

ESTABLISHMENT DATA
Summary table B. Establishment data, seasonally adjusted
Category Sept.
2014
July
2015
Aug.
2015(p)
Sept.
2015(p)

EMPLOYMENT BY SELECTED INDUSTRY
(Over-the-month change, in thousands)

Total nonfarm

250 223 136 142

Total private

235 195 100 118

Goods-producing

38 7 -22 -13

Mining and logging

7 -9 -9 -12

Construction

22 5 5 8

Manufacturing

9 11 -18 -9

Durable goods(1)

10 -4 -4 -5

Motor vehicles and parts

2.2 1.9 6.6 2.1

Nondurable goods

-1 15 -14 -4

Private service-providing

197 188 122 131

Wholesale trade

5.2 2.6 5.5 -4.1

Retail trade

31.5 28.6 4.4 23.7

Transportation and warehousing

5.5 14.1 6.1 3.5

Utilities

-1.8 2.1 1.0 -0.7

Information

4 4 -5 12

Financial activities

10 15 12 0

Professional and business services(1)

51 40 27 31

Temporary help services

14.4 -11.3 6.6 4.6

Education and health services(1)

46 42 47 29

Health care and social assistance

27.2 40.2 47.6 36.4

Leisure and hospitality

49 32 32 35

Other services

-3 8 -8 1

Government

15 28 36 24

(3-month average change, in thousands)

Total nonfarm

237 243 201 167

Total private

229 222 171 138

WOMEN AND PRODUCTION AND NONSUPERVISORY EMPLOYEES
AS A PERCENT OF ALL EMPLOYEES(2)

Total nonfarm women employees

49.4 49.4 49.4 49.4

Total private women employees

47.9 48.0 48.0 48.0

Total private production and nonsupervisory employees

82.6 82.4 82.4 82.4

HOURS AND EARNINGS
ALL EMPLOYEES

Total private

Average weekly hours

34.5 34.6 34.6 34.5

Average hourly earnings

$24.55 $25.01 $25.10 $25.09

Average weekly earnings

$846.98 $865.35 $868.46 $865.61

Index of aggregate weekly hours (2007=100)(3)

101.5 103.9 104.0 103.8

Over-the-month percent change

0.2 0.5 0.1 -0.2

Index of aggregate weekly payrolls (2007=100)(4)

119.0 124.0 124.6 124.3

Over-the-month percent change

0.3 0.6 0.5 -0.2

DIFFUSION INDEX
(Over 1-month span)(5)

Total private (263 industries)

61.4 60.1 55.5 52.9

Manufacturing (80 industries)

53.8 50.6 39.4 44.4

Footnotes
(1) Includes other industries, not shown separately.
(2) Data relate to production employees in mining and logging and manufacturing, construction employees in construction, and nonsupervisory employees in the service-providing industries.
(3) The indexes of aggregate weekly hours are calculated by dividing the current month’s estimates of aggregate hours by the corresponding annual average aggregate hours.
(4) The indexes of aggregate weekly payrolls are calculated by dividing the current month’s estimates of aggregate weekly payrolls by the corresponding annual average aggregate weekly payrolls.
(5) Figures are the percent of industries with employment increasing plus one-half of the industries with unchanged employment, where 50 percent indicates an equal balance between industries with increasing and decreasing employment.
(p) Preliminary

NOTE: Data have been revised to reflect March 2014 benchmark levels and updated seasonal adjustment factors.

National Income and Product Accounts
Gross Domestic Product: Second Quarter 2015 (Third Estimate)
Corporate Profits: Second Quarter 2015 (Revised Estimate)
 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 3.9 percent in the second quarter of 2015, according to the
"third" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased
0.6 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 3.7
percent. With the third estimate for the second quarter, the general picture of economic growth remains
the same; personal consumption expenditures (PCE) and nonresidential fixed investment increased more
than previously estimated (see “Revisions” on page 2).

The increase in real GDP in the second quarter primarily reflected positive contributions from
PCE, exports, nonresidential fixed investment, state and local government spending, and residential
fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.

Real GDP increased 3.9 percent in the second quarter, after increasing 0.6 percent in the first.
The acceleration in real GDP in the second quarter reflected an upturn in exports, an acceleration in
PCE, a deceleration in imports, an upturn in state and local government spending, and an acceleration in
nonresidential fixed investment that were partly offset by decelerations in private inventory investment
and in federal government spending.

Real gross domestic income (GDI) -- the value of the costs incurred and the incomes earned in
the production of goods and services in the nation’s economy -- increased 0.7 percent in the second
quarter, compared with an increase of 0.4 percent in the first. The average of real GDP and real GDI, a
supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 2.3
percent in the second quarter, compared with an increase of 0.5 percent in the first.

_______

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.

This news release is available on BEA's Web site.
_______

Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 3.6 percent in the second quarter, compared with an increase of 2.5 percent in
the first.

The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 1.5 percent in the second quarter, in contrast to a decrease of 1.6 percent in the first. Excluding
food and energy prices, the price index for gross domestic purchases increased 1.2 percent, compared
with an increase of 0.2 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 6.1 percent, or
$264.4 billion, in the second quarter to a level of $17,913.7 billion. In the first quarter, current-dollar
GDP increased 0.8 percent, or $33.3 billion.


Revisions

The upward revision to the percent change in real GDP primarily reflected upward revisions to
PCE, to nonresidential fixed investment, and to residential fixed investment that were partly offset by a
downward revision to private inventory investment. For information on revisions, see "The Revisions to
GDP, GDI, and Their Major Components."


Advance Estimate Second Estimate Third Estimate
(Percent change from preceding quarter)
Real GDP............................... 2.3 3.7 3.9
Current-dollar GDP..................... 4.4 5.9 6.1
Real GDI............................... ... 0.6 0.7
Average of Real GDP and Real GDI....... ... 2.1 2.3
Gross domestic purchases price index... 1.4 1.5 1.5


Corporate Profits


Profits from current production

Profits from current production (corporate profits with inventory valuation adjustment (IVA) and
capital consumption adjustment (CCAdj)) increased $70.4 billion in the second quarter, in contrast to a
decrease of $123.0 billion in the first.

Profits of domestic financial corporations increased $34.6 billion in the second quarter, in
contrast to a decrease of $23.4 billion in the first. Profits of domestic nonfinancial corporations
increased $24.3 billion, in contrast to a decrease of $70.5 billion. The rest-of-the-world component of
profits increased $11.4 billion, in contrast to a decrease of $29.0 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
second quarter, receipts increased $24.9 billion, and payments increased $13.4 billion.

Taxes on corporate income increased $31.3 billion in the second quarter, compared with an
increase of $5.5 billion in the first. Profits after tax with IVA and CCAdj increased $39.2 billion, in
contrast to a decrease of $128.4 billion.

Dividends increased $1.2 billion in the second quarter, compared with an increase of $6.3 billion
in the first. Undistributed profits increased $38.0 billion, in contrast to a decrease of $134.7 billion. Net
cash flow with IVA -- the internal funds available to corporations for investment -- increased $48.1
billion, in contrast to a decrease of $135.5 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 decreased $78.7 billion in the second quarter, in
contrast to an increase of $45.7 billion in the first. The CCAdj increased $7.7 billion, in contrast to a
decrease of $208.1 billion.


Corporate profits with IVA

Profits of domestic financial corporations increased $34.3 billion in the second quarter, in
contrast to a decrease of $3.1 billion in the first. Profits of domestic nonfinancial corporations increased
$17.0 billion, compared with an increase of $117.3 billion. The second-quarter increase in profits of
nonfinancial corporations primarily reflected an increase in “other” nonfinancial industries that was
partly offset by a decrease in retail trade industries. A small increase in manufacturing industries
reflected an increase in durable goods that was mostly offset by a decrease in nondurable goods.


Gross value added of nonfinancial domestic corporate business

Real gross value added of nonfinancial corporations decreased slightly in the second quarter.
Profits per unit of real value added increased, reflecting an increase in unit prices and a decrease in unit
nonlabor costs that were partly offset by an increase in unit labor costs.

* * *


BEA's national, international, regional, and industry estimates; the Survey of Current Business;
and BEA news releases are available without charge on BEA's Web site at www.bea.gov. By visiting the
site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements.

* * *

Next release -- October 29, 2015 at 8:30 A.M. EDT for:
Gross Domestic Product: Third Quarter 2015 (Advance Estimate)
http://bea.gov/newsreleases/national/GDP/GDPnewsrelease.htm

The Pronk Pops Show Podcasts Portfolio

Listen To Pronk Pops Podcast or Download Show 546

Listen To Pronk Pops Podcast or Download Show 538-545

Listen To Pronk Pops Podcast or Download Show 532-537

Listen To Pronk Pops Podcast or Download Show 526-531

Listen To Pronk Pops Podcast or Download Show 519-525

Listen To Pronk Pops Podcast or Download Show 510-518

Listen To Pronk Pops Podcast or Download Show 500-509

Listen To Pronk Pops Podcast or Download Show 490-499

Listen To Pronk Pops Podcast or Download Show 480-489

Listen To Pronk Pops Podcast or Download Show 473-479

Listen To Pronk Pops Podcast or Download Show 464-472

Listen To Pronk Pops Podcast or Download Show 455-463

Listen To Pronk Pops Podcast or Download Show 447-454

Listen To Pronk Pops Podcast or Download Show 439-446

Listen To Pronk Pops Podcast or Download Show 431-438

Listen To Pronk Pops Podcast or Download Show 422-430

Listen To Pronk Pops Podcast or Download Show 414-421

Listen To Pronk Pops Podcast or Download Show 408-413

Listen To Pronk Pops Podcast or Download Show 400-407

Listen To Pronk Pops Podcast or Download Show 391-399

Listen To Pronk Pops Podcast or Download Show 383-390

Listen To Pronk Pops Podcast or Download Show 376-382

Listen To Pronk Pops Podcast or Download Show 369-375

Listen To Pronk Pops Podcast or Download Show 360-368

Listen To Pronk Pops Podcast or Download Show 354-359

Listen To Pronk Pops Podcast or Download Show 346-353

Listen To Pronk Pops Podcast or Download Show 338-345

Listen To Pronk Pops Podcast or Download Show 328-337

Listen To Pronk Pops Podcast or Download Show 319-327

Listen To Pronk Pops Podcast or Download Show 307-318

Listen To Pronk Pops Podcast or Download Show 296-306

Listen To Pronk Pops Podcast or Download Show 287-295

Listen To Pronk Pops Podcast or Download Show 277-286

Listen To Pronk Pops Podcast or Download Show 264-276

Listen To Pronk Pops Podcast or Download Show 250-263

Listen To Pronk Pops Podcast or Download Show 236-249

Listen To Pronk Pops Podcast or Download Show 222-235

Listen To Pronk Pops Podcast or Download Show 211-221

Listen To Pronk Pops Podcast or Download Show 202-210

Listen To Pronk Pops Podcast or Download Show 194-201

Listen To Pronk Pops Podcast or Download Show 184-193

Listen To Pronk Pops Podcast or Download Show 174-183

Listen To Pronk Pops Podcast or Download Show 165-173

Listen To Pronk Pops Podcast or Download Show 158-164

Listen To Pronk Pops Podcast or Download Show 151-157

Listen To Pronk Pops Podcast or Download Show 143-150

Listen To Pronk Pops Podcast or Download Show 135-142

Listen To Pronk Pops Podcast or Download Show 131-134

Listen To Pronk Pops Podcast or Download Show 124-130

Listen To Pronk Pops Podcast or Download Shows 121-123

Listen To Pronk Pops Podcast or Download Shows 118-120

Listen To Pronk Pops Podcast or Download Shows 113 -117

Listen To Pronk Pops Podcast or Download Show 112

Listen To Pronk Pops Podcast or Download Shows 108-111

Listen To Pronk Pops Podcast or Download Shows 106-108

Listen To Pronk Pops Podcast or Download Shows 104-105

Listen To Pronk Pops Podcast or Download Shows 101-103

Listen To Pronk Pops Podcast or Download Shows 98-100

Listen To Pronk Pops Podcast or Download Shows 94-97

Listen To Pronk Pops Podcast or Download Shows 93

Listen To Pronk Pops Podcast or Download Shows 92

Listen To Pronk Pops Podcast or Download Shows 91

Listen To Pronk Pops Podcast or Download Shows 88-90

Listen To Pronk Pops Podcast or Download Shows 84-87

Listen To Pronk Pops Podcast or Download Shows 79-83

Listen To Pronk Pops Podcast or Download Shows 74-78

Listen To Pronk Pops Podcast or Download Shows 71-73

Listen To Pronk Pops Podcast or Download Shows 68-70

Listen To Pronk Pops Podcast or Download Shows 65-67

Listen To Pronk Pops Podcast or Download Shows 62-64

Listen To Pronk Pops Podcast or Download Shows 58-61

Listen To Pronk Pops Podcast or Download Shows 55-57

Listen To Pronk Pops Podcast or Download Shows 52-54

Listen To Pronk Pops Podcast or Download Shows 49-51

Listen To Pronk Pops Podcast or Download Shows 45-48

Listen To Pronk Pops Podcast or Download Shows 41-44

Listen To Pronk Pops Podcast or Download Shows 38-40

Listen To Pronk Pops Podcast or Download Shows 34-37

Listen To Pronk Pops Podcast or Download Shows 30-33

Listen To Pronk Pops Podcast or Download Shows 27-29

Listen To Pronk Pops Podcast or Download Shows 17-26

Listen To Pronk Pops Podcast or Download Shows 16-22

Listen To Pronk Pops Podcast or Download Shows 10-15

Listen To Pronk Pops Podcast or Download Shows 01-09


Make a Comment

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Liked it here?
Why not try sites on the blogroll...

%d bloggers like this: