The following is an unedited transcript available at:

http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

GROSS DOMESTIC PRODUCT: THIRD QUARTER 2009 (SECOND ESTIMATE)

Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 2.8 percent in the third quarter of 2009, (that is, from the second quarter to the third quarter), according to the """"second"""" estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP decreased 0.7 percent.

The GDP estimate released today is based on more complete source data than were available for the """"advance"""" estimate issued last month. In the advance estimate, the increase in real GDP was 3.5 percent (see """"Revisions"""" on page 3).

The increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, private inventory investment, federal government spending, and residential fixed investment that were partly offset by a negative contribution from nonresidential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.

The upturn in real GDP in the third quarter primarily reflected upturns in PCE, in private inventory investment, in exports, and in residential fixed investment and a smaller decrease in nonresidential fixed investment that were partly offset by an upturn in imports, a downturn in state and local government spending, and a deceleration in federal government spending.
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FOOTNOTE.-- Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise specified. Quarter-to-quarter dollar changes are differences between these published estimates. Percent changes are calculated from unrounded data and are annualized. “Real” estimates are in chained (2005) dollars. Price indexes are chain-type measures.

This news release is available on BEA’s Web site along with the Technical Note and Highlights related to this release.
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Motor vehicle output added 1.45 percentage points to the third-quarter change in real GDP after adding 0.19 percentage point to the second-quarter change. Final sales of computers subtracted 0.13 percentage point from the third-quarter change in real GDP after subtracting 0.04 percentage point from the second-quarter change.

The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 1.4 percent in the third quarter, 0.2 percentage point less than in the advance estimate; this index increased 0.5 percent in the second quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 0.4 percent in the third quarter, compared with an increase of 0.8 percent in the second.

Real personal consumption expenditures increased 2.9 percent in the third quarter, in contrast to a decrease of 0.9 percent in the second. Real nonresidential fixed investment decreased 4.1 percent, compared with a decrease of 9.6 percent. Nonresidential structures decreased 15.1 percent, compared with a decrease of 17.3 percent. Equipment and software increased 2.3 percent, in contrast to a decrease of 4.9 percent. Real residential fixed investment increased 19.5 percent, in contrast to a decrease of 23.3 percent.

Real exports of goods and services increased 17.0 percent in the third quarter, in contrast to a decrease of 4.1 percent in the second. Real imports of goods and services increased 20.8 percent, in contrast to a decrease of 14.7 percent.

Real federal government consumption expenditures and gross investment increased 8.3 percent in the third quarter, compared with an increase of 11.4 percent in the second. National defense increased 8.9 percent, compared with an increase of 14.0 percent. Non-defense increased 6.9 percent, compared with an increase of 6.1 percent. Real state and local government consumption expenditures and gross investment decreased 0.1 percent, in contrast to an increase of 3.9 percent.

The change in real private inventories added 0.87 percentage point to the third-quarter change in real GDP, after subtracting 1.42 percentage points from the second-quarter change. Private businesses decreased inventories $133.4 billion in the third quarter, following decreases of $160.2 billion in the second quarter and of $113.9 billion in the first.

Real final sales of domestic product -- GDP less change in private inventories -- increased 1.9 percent in the third quarter, compared with an increase of 0.7 percent in the second.

Gross domestic purchases

Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 3.5 percent in the third quarter, in contrast to a decrease of 2.3 percent in the second.

Gross national product

Real gross national product -- the goods and services produced by the labor and property supplied by U.S. residents -- increased 3.8 percent in the third quarter, in contrast to a decrease of 1.0 percent in the second. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which increased $31.6 billion in the third quarter after decreasing $7.4 billion in the second; in the third quarter, receipts increased $7.1 billion, and payments decreased $24.5 billion.