The following is an unedited transcript available at:

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

GROSS DOMESTIC PRODUCT: SECOND QUARTER 2009 (THIRD ESTIMATE)

CORPORATE PROFITS: SECOND QUARTER 2009 (REVISED ESTIMATE)

Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- decreased at an annual rate of 0.7 percent in the second quarter of 2009, (that is, from the first quarter to the second quarter), according to the ""third"" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP decreased 6.4 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 decrease in real GDP was 1.0 percent (see ""Revisions"" on page 3).

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

The much smaller decrease in real GDP in the second quarter than in the first primarily reflected much smaller decreases in nonresidential fixed investment and in exports, an upturn in federal government spending, a smaller decrease in private inventory investment, an upturn in state and local government spending, and a smaller decrease in residential fixed investment that were partly offset by a much smaller decrease in imports and a downturn in PCE.
______________

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.
______________

Motor vehicle output added 0.19 percentage point to the second-quarter change in real GDP after subtracting 1.69 percentage points from the first-quarter change. Final sales of computers subtracted 0.04 percentage point from the second-quarter change in real GDP after adding 0.06 percentage point to the first-quarter change.

The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 0.5 percent in the second quarter, the same increase as in the second estimate; this index decreased 1.4 percent in the first quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 0.8 percent in the second quarter, compared with an increase of 0.2 percent in the first.

Real personal consumption expenditures decreased 0.9 percent in the second quarter, in contrast to an increase of 0.6 percent in the first. Real nonresidential fixed investment decreased 9.6 percent, compared with a decrease of 39.2 percent. Nonresidential structures decreased 17.3 percent, compared with a decrease of 43.6 percent. Equipment and software decreased 4.9 percent, compared with a decrease of 36.4 percent. Real residential fixed investment decreased 23.3 percent, compared with a decrease of 38.2 percent.

Real exports of goods and services decreased 4.1 percent in the second quarter, compared with a decrease of 29.9 percent in the first. Real imports of goods and services decreased 14.7 percent, compared with a decrease of 36.4 percent.

Real federal government consumption expenditures and gross investment increased 11.4 percent in the second quarter, in contrast to a decrease of 4.3 percent in the first. National defense increased 14.0 percent, in contrast to a decrease of 5.1 percent. Nondefense increased 6.1 percent, in contrast to a decrease of 2.5 percent. Real state and local government consumption expenditures and gross investment increased 3.9 percent, in contrast to a decrease of 1.5 percent.

The change in real private inventories subtracted 1.42 percentage points from the second-quarter change in real GDP, after subtracting 2.36 percentage points from the first-quarter change. Private businesses decreased inventories $160.2 billion in the second quarter, following a decrease of $113.9 billion in the first quarter and a decrease of $37.4 billion in the fourth.

Real final sales of domestic product -- GDP less change in private inventories -- increased 0.7 percent in the second quarter, in contrast to a decrease of 4.1 percent in the first.

Gross domestic purchases

Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- decreased 2.3 percent in the second quarter, compared with a decrease of 8.6 percent in the first.

Gross national product