Statement from U.S. Secretary of Commerce Wilbur Ross on Q4 and Annual 2019 GDP: Economy Grows 2.3% in 2019

Today, the Department of Commerce’s Bureau of Economic Analysis (BEA) released the fourth quarter and annual gross domestic product (GDP) numbers. The Bureau found that the real gross domestic product increased at an annual rate of 2.1 percent in the fourth quarter and 2.3 percent for all of 2019, continuing to beat expectations.

“Since the beginning of this Administration, critics have predicted doom and gloom for the American economy,” said Commerce Secretary Wilbur Ross. “They were wrong then, and they are wrong now. President Trump continues to unleash incredible growth in the American economy despite the effects of Boeing’s problems with the 737 MAX and the General Motors’ strike. GDP for 2019 is more great news for the American economy and is even better than what today’s numbers show due to those two special factors. Beyond this, Americans continue to experience tremendous increases in employment and wages that prime 2020 for further economic gains. When you add in the benefits of USMCA, the Phase One Deal with China, the two trade deals with Japan, and the re-working of the free trade agreement with South Korea, America is back and competing on the world stage.”

The GDP continues to beat performance predictions before the 2016 election, and there was other good news in the BEA report:

  • The U.S. has the largest GDP of any country in the world, and it continues to grow at a sustained rate. U.S. GDP reached an all-time high in 2019 of $21.43 trillion.
  • The growth of the goods GDP rose by an impressive 4.7 percent, while services was at 1.7 percent.
  • Consumer spending increased by 2.6 percent last year and spending on durable goods surged by 4.7 percent in 2019.
  • Personal income reached an all-time high of $18.6 trillion, up from $17.8 trillion in 2018.
  • The personal savings rate increased to 8 percent for the year, with Americans saving $1.31 trillion in 2019, up from $1.21 trillion in 2018.
  • The long period of massive import surges of goods is finally abating. For the year, imports of goods rose by only 0.2 percent, the lowest yearly increase since 2009.

BEA Reports 17 of 22 Industry Groups Contributed to the 2.1 Percent Increase in Real GDP in 3rd Quarter.

Nondurable goods manufacturing; retail trade; and professional, scientific, and technical services were the leading contributors to the increase in U.S. economic growth in the third quarter of 2019, according to gross domestic product (GDP) by industry statistics released by the Bureau of Economic Analysis. Both private services- and goods-producing industries contributed to the increase; the government sector increased slightly. Overall, 17 of 22 industry groups contributed to the 2.1 percent increase in real GDP in the third quarter.

Nondurable goods manufacturing increased 10.1 percent in the third quarter, after decreasing 0.3 percent in the second quarter.
Retail trade increased 8.2 percent, after increasing 0.2 percent.
Professional, scientific, and technical services increased 5.6 percent, after increasing 7.4 percent.
“In the 3rd quarter of last year, retail and wholesale trade fueled the continuing economic resurgence. With growth in 17 of 22 sectors, American Industry continues to thrive thanks to the pro-growth policies of the Trump Administration,” said Commerce Secretary Wilbur Ross.

Presidential Delegation to Switzerland to attend the World Economic Forum

WASHINGTON– President Donald J. Trump announced the Presidential Delegation that will attend the World Economic Forum in Davos-Klosters, Switzerland, from January 20 to January 24, 2020. Steven Mnuchin, Secretary of the Treasury, will lead the delegation.

Members of the Presidential Delegation:
Steven Mnuchin, Secretary of the Treasury (Lead)
Wilbur Ross, Secretary of Commerce
Eugene Scalia, Secretary of Labor
Elaine Chao, Secretary of Transportation
Robert Lighthizer, United States Trade Representative
Keith Krach, Under Secretary for Growth, Energy and the Environment, Department of State
Ivanka Trump, Assistant to the President and Advisor to the President
Jared Kushner, Assistant to the President and Senior Advisor to the President
Christopher Liddell, Assistant to the President and Deputy Chief of Staff for Policy Coordination

Measuring the Value of the U.S. Space Economy

According to the Commerce Department’s website,The Space Economy Satellite Account (SESA) is a new, collaborative effort to measure the relative importance of the space sector on the U.S. economy, with a special emphasis on the growing commercial space segment. This new account is part of the economic satellite accounts produced by the Bureau of Economic Analysis (BEA). A satellite account refers to statistics that complement BEA’s official U.S. economic statistics, such as GDP and personal income. These satellite accounts provide additional detail and allow for a more in-depth analysis of key sectors of the U.S. economy, such as health care, travel and tourism, and outdoor recreation.

Using input from industry experts and multiple government agencies, chiefly the U.S. Department of Commerce (DOC) Office of Space Commerce, the forthcoming SESA statistics will show the impact of the U.S. space economy on the overall U.S. economy. Specifically, the SESA statistics will provide an estimate of the space economy’s contribution to current-dollar gross domestic product (GDP) and will illustrate the contributions of individual industries to the U.S. space economy. In addition to GDP, the SESA will include gross output, compensation, and employment by industry statistics for the space economy.

U.S. Economy Increases at a 2.1% Pace in the Third Quarter

Real gross domestic product (GDP) increased 2.1 percent in the third quarter of 2019, according to the “third” estimate released by the Bureau of Economic Analysis. The growth rate was unrevised from the “second” estimate released in November. In the second quarter, real GDP rose 2.0 percent.

GDP highlights

The third-quarter increase in real GDP reflected increases in consumer spending, government spending, housing investment, and exports, while business investment and inventory investment decreased. Imports, which are a subtraction in the calculation of GDP, increased.
The increase in consumer spending reflected increases in both goods (notably recreational goods and vehicles as well as food and beverages) and services (led by other services, notably personal care and legal services, as well as housing and utilities). The increase in government spending reflected increases in federal and in state and local government spending.

The decrease in business investment reflected decreases in structures (led by mining exploration, shafts, and wells) and in equipment (notably aircraft as well as computers and peripheral equipment).

Updates to GDP

While overall GDP growth was unrevised from the second estimate, upward revisions to consumer spending and business investment were offset by a downward revision to inventory investment.

Corporate profits from current production

Profits decreased 0.2 percent at a quarterly rate in the third quarter after increasing 3.8 percent in the second quarter. Corporate profits decreased 1.2 percent in the third quarter from one year ago.

Profits of domestic nonfinancial corporations decreased 0.5 percent after increasing 3.2 percent.
Profits of domestic financial corporations decreased 1.1 percent after increasing 0.6 percent.
Profits from the rest of the world increased 1.0 percent after increasing 7.7 percent.

BEA Releases First Official Release of Gross Domestic Product by County

BEA Graphic on Percent Change in Real GDP by County, 2018
(Bureau of Economic Analysis (BEA) )

Real gross domestic product (GDP) increased in 2,375 counties, decreased in 717, and was unchanged in 21 in 2018, according to estimates released today by the U.S. Bureau of Economic Analysis (BEA). The percentage change in real GDP ranged from 86.5 percent in Jackson County, WV, to -44.0 percent in Grant County, ND.

GDP is the value of goods and services produced within a county. The size of a county’s economy as measured by GDP varies considerably across the United States. In 2018, the total level of real GDP ranged from $18.4 million in Issaquena County, MS, to $710.9 billion in Los Angeles County, CA.

Highlights

Large Counties: 141 counties with populations greater than 500,000 in 2018

  • Real GDP increased in 136 and decreased in 5.
  • GDP ranged from $11.2 billion in Pasco County, FL, to $710.9 billion dollars in Los Angeles County, CA.
  • Santa Clara County, CA, (10.2 percent) was the fastest growing large county. The information industry was the leading contributor to the county’s growth.
  • Kern County, CA, (-0.7 percent) had the largest percentage decrease in GDP. The mining, quarrying, and oil and gas extraction industry (primarily oil and gas extraction) was the leading contributor to the decrease

Medium Counties: 464 counties with populations between 100,000 and 500,000 in 2018

  • Real GDP increased in 433, decreased in 30, and was unchanged in 1.
  • GDP ranged from $2.0 billion in Saline County, AR, to $52.6 billion dollars in Morris County, NJ.
  • Canadian County, OK, (21.0 percent) was the fastest growing medium county. The mining, quarrying, and oil and gas extraction industry (primarily oil and gas extraction and support activities) was the leading contributor to the county’s growth.
  • San Juan County, NM, (-6.1 percent) had the largest percentage decrease in GDP. The mining, quarrying, and oil and gas extraction industry (primarily non-oil and gas mineral extraction) was the leading contributor to the decrease.

Small Counties: 2,508 counties with populations less than 100,000 in 2018

  • Real GDP increased in 1,806, decreased in 682, and was unchanged in 20.
  • GDP ranged from $18.4 million in Issaquena County, MS, to $13.3 billion dollars in Karnes County, TX.
  • Jackson County, WV, (86.5 percent) was the fastest growing small county. The construction industry was the leading contributor to the county’s growth.
  • Grant County, ND, (-44.0 percent) had the largest percentage decrease in GDP. The agriculture, forestry, fishing, and hunting industry was the leading contributor to the decrease.

BEA to Release First Official GDP Estimates

The size of every county’s economy with industry detail will be officially released for the first time by the U.S. Bureau of Economic Analysis on Dec. 12.

BEA will estimate annual gross domestic product, or GDP, for the years 2001 through 2018 for more than 3,000 counties. The data will include contributions to GDP by 34 industries, such as manufacturing, retail trade, and health and social assistance.

Measuring GDP at the county level is a milestone in BEA’s efforts to better capture how economic activity is distributed across the nation. This new information, in high demand by data users, will complement the county personal income statistics BEA has produced since 1975.

GDP for counties and metropolitan statistical areas will be published together at 8:30 a.m. on Dec. 12 in a new joint release called Local Area Gross Domestic Product, 2018. It replaces the Gross Domestic Product by Metropolitan Area release of previous years.

BEA will continue to publish annual county and metro GDP statistics each December. In addition to industry contributions to GDP, the data will include current-dollar GDP; inflation-adjusted or real GDP; percent change from the preceding year; and quantity indexes.

The county statistics can be used for comparisons to other counties, metropolitan areas, state economies, or the nation overall.

They can answer questions such as:

  • What is the size of a county’s economy?
  • Is its economy growing or declining?
  • In which industries does the county specialize?
  • What industries are driving its growth?
  • What has been the county’s economic growth trend over time?

Business owners, county officials, and policymakers at all levels of government can use these statistics to make better-informed decisions about investments, economic development, or economic policies.

High-quality, consistently defined time series data for counties across the United States will aid research into topics such as the distribution of national economic output, local economic dynamics, and the effectiveness of economic development strategies.

Like county personal income data, the new GDP statistics will cover 3,113 areas, including county equivalents such as Louisiana’s parishes and Alaska’s boroughs, the District of Columbia, and the independent cities in Maryland, Missouri, Nevada, and Virginia. Kalawao County, Hawaii, and the smaller independent cities of Virginia are combined with adjacent counties.

GDP statistics are based on the place of production, such as the county where an office or factory is located, regardless of where the workers live. This differs from BEA’s personal income statistics, which measure the incomes of all people residing in a county, no matter where they work.

For example, a person who works in Los Angeles and commutes home to Riverside County, Calif., contributes to Los Angeles County’s GDP but Riverside County’s personal income data.

BEA released prototype county GDP data last December and sought evaluation and feedback from data users. The responses and further research led BEA to refine its methodology and add significant industry detail to the coming official release.