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GDP and the Economy

Third Estimates for the Fourth Quarter of 2024

April 2, 2025

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Real gross domestic product (GDP) increased at an annual rate of 2.4 percent in the fourth quarter of 2024, according to the “third” estimate of the National Income and Product Accounts (chart 1 and table 1).1 With the third estimate, real GDP growth was revised up 0.1 percentage point from the “second” estimate issued in February. In the third quarter, real GDP increased 3.1 percent.

Real GDP increased 2.8 percent in 2024 (from the 2023 annual level to the 2024 annual level), compared with an increase of 2.9 percent in 2023 (see “Real GDP 2024”).

Chart 1. Real GDP: Percent Change from Preceding Quarter

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Chart 2. Real GDP: Contributions to the Percent Change in 2024:Q4

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The increase in fourth-quarter real GDP primarily reflected an increase in consumer spending that was partly offset by decreases in inventory investment and nonresidential fixed investment. Imports, which are a subtraction in the calculation of GDP, decreased (chart 2 and table 1).2

  • The increase in consumer spending reflected increases in both services and goods. Within services, the leading contributors to the increase were health care and “other services.” Within goods, the leading contributors to the increase were motor vehicles and parts, recreational goods and vehicles, and “other nondurable goods.”
    • Within health care, both outpatient services and hospital and nursing home services (notably, hospital services) increased.
    • Within other services, the increase was led by net foreign travel and communication services.
    • The increase in motor vehicles and parts was led by new light trucks.
    • The increase in recreational goods and vehicles was led by video, audio, photographic, and information processing equipment and media.
    • The increase in other nondurable goods was led by recreational items.
  • The decrease in inventory investment was led by a decrease in retail trade.
  • Within nonresidential fixed investment, the decrease was led by equipment. Within equipment, the decrease was led by transportation equipment and computers and peripheral equipment.
  • Within imports, an increase in goods (notably, capital goods, except automotive) was partly offset by a decrease in services (notably, travel).

Compared to the third quarter, the deceleration in real GDP in the fourth quarter primarily reflected downturns in exports and nonresidential fixed investment that were partly offset by an upturn in residential fixed investment and an acceleration in consumer spending. Imports turned down.

Real gross domestic income (GDI)—which measures output of the economy as the costs incurred and the incomes earned in the production of goods and services (as measured by GDP)—increased 4.5 percent at an annual rate in the fourth quarter, compared with an increase of 1.4 percent in the third quarter. The average of real GDP and real GDI—a supplemental measure of U.S. economic activity that equally weights GDP and GDI—increased 3.5 percent, compared with an increase of 2.2 percent.

Table 1. Real Gross Domestic Product 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)
2024
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1 GDP1 100.0 1.6 3.0 3.1 2.4 1.6 3.0 3.1 2.4
2 Personal consumption expenditures 68.1 1.9 2.8 3.7 4.0 1.30 1.90 2.48 2.70
3 Goods 21.4 −1.2 3.0 5.6 6.2 −0.25 0.63 1.18 1.30
4 Durable goods 7.5 −1.8 5.5 7.6 12.4 −0.13 0.40 0.54 0.87
5 Nondurable goods 13.9 −0.8 1.7 4.6 3.1 −0.12 0.23 0.63 0.42
6 Services 46.8 3.4 2.7 2.8 3.0 1.55 1.27 1.31 1.41
7 Gross private domestic investment 17.8 3.6 8.3 0.8 −5.6 0.64 1.47 0.16 −1.03
8 Fixed investment 17.7 6.5 2.3 2.1 −1.1 1.14 0.42 0.38 −0.20
9 Nonresidential 13.7 4.5 3.9 4.0 −3.0 0.61 0.53 0.55 −0.41
10 Structures 3.1 6.3 0.2 −5.0 2.9 0.20 0.01 −0.16 0.09
11 Equipment 5.1 0.3 9.8 10.8 −8.7 0.02 0.49 0.54 −0.47
12 Intellectual property products 5.5 7.5 0.7 3.1 −0.5 0.40 0.04 0.17 −0.03
13 Residential 4.0 13.7 −2.8 −4.3 5.5 0.53 −0.11 −0.18 0.22
14 Change in private inventories 0.0 --- --- --- --- −0.49 1.05 −0.22 −0.84
15 Net exports of goods and services −3.1 --- --- --- --- −0.61 −0.90 −0.43 0.26
16 Exports 10.8 1.9 1.0 9.6 −0.2 0.21 0.12 1.01 −0.01
17 Goods 6.9 −0.2 0.9 10.3 −4.6 −0.02 0.07 0.70 −0.33
18 Services 3.9 6.1 1.2 8.4 8.5 0.23 0.05 0.31 0.32
19 Imports 13.9 6.1 7.6 10.7 −1.9 −0.82 −1.01 −1.44 0.27
20 Goods 11.1 6.5 8.4 10.7 −4.9 −0.69 −0.90 −1.14 0.57
21 Services 2.9 4.8 4.3 11.0 10.9 −0.13 −0.12 −0.29 −0.30
22 Government consumption expenditures and gross investment 17.2 1.8 3.1 5.1 3.1 0.30 0.52 0.86 0.52
23 Federal 6.5 −0.4 4.3 8.9 4.0 −0.02 0.27 0.55 0.25
24 National defense 3.7 −2.5 6.4 13.9 4.8 −0.09 0.23 0.48 0.18
25 Nondefense 2.7 2.6 1.5 2.6 2.9 0.07 0.04 0.07 0.08
26 State and local 10.7 3.1 2.3 2.9 2.5 0.32 0.25 0.31 0.27
Addenda:
27 GDI2 --- 3.0 2.0 1.4 4.5 --- --- --- ---
28 Average of GDP and GDI --- 2.3 2.5 2.2 3.5 --- --- --- ---
29 Final sales of domestic product --- 2.1 1.9 3.3 3.3 --- --- --- ---
30 Goods 29.9 −3.6 5.2 4.7 0.7 −1.12 1.56 1.41 0.23
31 Services 61.3 3.2 2.4 3.2 3.0 1.91 1.48 1.92 1.81
32 Structures 8.8 9.9 −0.6 −2.9 4.7 0.85 −0.05 −0.26 0.41
GDI
Gross domestic income
GDP
Gross domestic product
  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 Accounts (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 fourth quarter, private goods-producing industries increased 2.3 percent, private services-producing industries increased 2.4 percent, and government increased 2.7 percent (chart 3 and table 2). Overall, 16 of 22 industry groups contributed to the fourth-quarter increase in real GDP (chart 4).

  • Within private goods-producing industries, the increase was led by construction and nondurable-goods manufacturing (mainly chemical products).
  • Within private services-producing industries, the largest contributors to the increase were real estate and rental and leasing (led by real estate); professional, scientific, and technical services; and health care and social assistance (led by ambulatory health care services).
  • The increase in government reflected an increase in state and local government.
Chart 3. Real GDP by Sector: Percent Change from Preceding Period

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Table 2. Real Gross Domestic Product by Industry Group 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)
2024
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1 GDP1 100.0 1.6 3.0 3.1 2.4 1.6 3.0 3.1 2.4
2 Private industries 88.7 1.6 3.3 3.2 2.4 1.40 2.90 2.83 2.12
3 Agriculture, forestry, fishing, and hunting 0.9 5.6 23.8 −7.8 0.8 0.05 0.18 −0.07 0.01
4 Mining 1.3 −10.5 −4.9 1.3 7.2 −0.16 −0.06 0.02 0.09
5 Utilities 1.5 −9.1 5.6 −1.0 11.5 −0.15 0.09 −0.01 0.16
6 Construction 4.5 8.3 5.2 −0.2 4.8 0.36 0.23 −0.01 0.21
7 Manufacturing 9.9 −6.5 8.2 3.2 0.7 −0.68 0.79 0.33 0.07
8 Durable goods 5.3 −10.4 5.8 3.0 −0.9 −0.60 0.31 0.16 −0.05
9 Nondurable Goods 4.6 −1.8 10.9 3.5 2.5 −0.09 0.48 0.16 0.12
10 Wholesale trade 5.8 4.0 2.3 3.2 −0.9 0.23 0.14 0.19 −0.05
11 Retail trade 6.3 6.7 −0.6 18.7 2.7 0.42 −0.03 1.10 0.17
12 Transporation and warehousing 3.3 0.9 0.4 4.2 5.1 0.03 0.01 0.14 0.17
13 Information 5.4 2.0 1.6 6.2 1.7 0.11 0.08 0.33 0.09
14 Finance, insurance, real estate, rental, and leasing 21.3 −0.1 3.8 0.7 2.8 −0.02 0.80 0.15 0.59
15 Finance and insurance 7.5 −2.5 6.6 0.3 2.8 −0.18 0.48 0.03 0.21
16 Real estate and rental and leasing 13.8 1.1 2.3 0.9 2.8 0.16 0.32 0.13 0.38
17 Professional and business services 13.2 4.2 1.9 2.0 2.6 0.55 0.25 0.27 0.34
18 Professional, scientific, and technical services 8.2 5.7 2.8 3.6 4.6 0.45 0.23 0.29 0.37
19 Management of companies and enterprises 1.9 7.6 −2.5 2.1 0.1 0.13 −0.05 0.04 0.00
20 Administrative and waste management services 3.2 −1.1 2.0 −2.0 −1.0 −0.03 0.06 −0.06 −0.03
21 Educational services, health care, and social assistance 8.8 4.8 3.9 4.7 4.2 0.41 0.33 0.40 0.37
22 Educational services 1.1 2.4 −6.1 4.9 1.9 0.03 −0.07 0.05 0.02
23 Health care and social assistance 7.6 5.2 5.4 4.6 4.6 0.38 0.40 0.35 0.34
24 Arts, entertainment, recreation, accomodation, and food services 4.4 6.7 3.1 −0.6 −0.9 0.29 0.14 −0.03 −0.04
25 Arts, entertainment, and recreation 1.2 19.3 24.6 −2.2 −2.3 0.19 0.25 −0.03 −0.03
26 Accommodation and food services 3.3 2.8 −3.5 0.0 −0.4 0.09 −0.12 0.00 −0.01
27 Other services, except government 2.1 −0.7 −1.8 1.9 −2.8 −0.01 −0.04 0.04 −0.06
28 Government 11.3 1.9 0.8 2.1 2.7 0.21 0.09 0.23 0.30
29 Federal 3.6 1.2 1.1 1.1 1.8 0.04 0.04 0.04 0.06
30 State and local 7.7 2.2 0.6 2.5 3.1 0.17 0.05 0.19 0.24
  Addenda:
31 Private goods-producing industries2 16.5 −2.6 6.9 1.5 2.3 −0.44 1.14 0.26 0.38
32 Private services-producing industries3 72.2 2.6 2.4 3.6 2.4 1.84 1.77 2.57 1.74
GDP
Gross domestic product
  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.”

Chart 4. Contributions to Percent Change in Real GDP by Industry Group, 2024:Q4

[Click chart to expand]

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 1.7 percent in the fourth quarter (chart 5 and table 3). Private goods-producing industries increased 0.3 percent, private services-producing industries increased 2.0 percent, and government increased 3.1 percent. Overall, 17 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 and Related Measures
[Seasonally adjusted at annual rates]
Line Series Change from preceding period (percent)
2024
Q1 Q2 Q3 Q4
1 All industries 2.8 1.8 3.2 1.7
2 Private industries 2.9 1.8 3.1 1.6
3 Agriculture, forestry, fishing, and hunting 1.0 −0.7 −4.7 0.3
4 Mining −3.8 2.0 −1.8 0.7
5 Utilities −1.2 10.3 −2.6 0.5
6 Construction 7.6 1.5 0.0 3.7
7 Manufacturing 0.2 2.6 1.5 −0.9
8 Durable goods −3.7 4.6 3.5 −3.1
9 Nondurable goods 4.2 0.6 −0.5 1.4
10 Wholesale trade 1.1 −0.5 5.9 1.7
11 Retail trade 2.7 −0.6 12.3 6.4
12 Transporation and warehousing −0.4 1.1 4.4 6.1
13 Information 4.5 2.3 7.9 1.0
14 Finance, insurance, real estate, rental, and leasing 4.1 1.1 0.4 0.3
15 Finance and insurance 6.3 0.8 1.8 −3.2
16 Real estate and rental and leasing 2.6 1.3 −0.6 2.8
17 Professional and business services 2.7 2.4 3.3 1.8
18 Professional, scientific, and technical services 2.8 3.6 3.8 3.6
19 Management of companies and enterprises 7.7 1.1 5.7 −0.1
20 Administrative and waste management services −0.3 0.6 1.0 −1.1
21 Educational services, health care, and social assistance 6.7 4.5 6.1 3.2
22 Educational services 4.0 2.0 1.8 0.5
23 Health care and social assistance 7.1 4.8 6.7 3.6
24 Arts, entertainment, recreation, accomodation, and food services 1.9 0.2 0.7 3.8
25 Arts, entertainment, and recreation 12.8 16.8 1.0 6.8
26 Accommodation and food services −1.3 −4.5 0.5 2.8
27 Other services, except government 3.8 2.1 7.8 −3.3
28 Government 2.3 2.2 3.5 3.1
29 Federal 1.4 1.9 7.1 3.2
30 State and local 2.7 2.3 2.1 3.0
  Addenda:
31 Private goods-producing industries1 1.6 2.1 0.6 0.3
32 Private services-producing industries2 3.3 1.7 4.0 2.0
  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.”

The U.S. Bureau of Economic Analysis' (BEA's) featured measure of inflation for the U.S. economy, the price index for gross domestic purchases (goods and services purchased by U.S. residents), increased 2.2 percent in the fourth quarter after increasing 1.9 percent in the third quarter (chart 6 and table 4).

Within gross domestic purchases, food prices increased 2.8 percent in the fourth quarter after increasing 1.3 percent in the third quarter. Prices for energy goods and services decreased 4.2 percent after decreasing 12.6 percent. Excluding food and energy, gross domestic purchases prices increased 2.3 percent after decreasing 2.4 percent.

The price index for personal consumption expenditures (PCE) increased 2.4 percent in the fourth quarter after increasing 1.5 percent in the third quarter. The increase in PCE prices reflected an increase in prices for services that was partly offset by a decrease in prices for goods.

  • Within services, increases were widespread. The leading contributors were housing and utilities (mainly housing), financial services and insurance (mainly banking and other financial services), and health care (led by hospitals).
  • Within goods, the leading contributors to the decrease were gasoline and “other energy goods” (mainly motor vehicle fuels, lubricants, and fluids) and recreational goods and vehicles (led by video, audio, photographic, and information processing equipment and media).

Excluding food and energy, the “core” PCE price index increased 2.6 percent in the fourth quarter, following an increase of 2.2 percent in the third 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 (2017=100)]
Line Series Change from preceding period
(percent)		 Contribution to percent change in gross domestic purchases prices
(percentage points)
2024
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1 Gross domestic purchases1 3.0 2.4 1.9 2.2 3.0 2.4 1.9 2.2
2 Personal consumption expenditures 3.4 2.5 1.5 2.4 2.25 1.67 1.02 1.57
3 Goods −0.5 0.7 −1.6 −0.4 −0.10 0.15 −0.33 −0.07
4 Durable goods −0.5 −2.6 −2.4 −0.1 −0.03 −0.18 −0.17 0.00
5 Nondurable goods −0.5 2.5 −1.2 −0.5 −0.07 0.33 −0.16 −0.07
6 Services 5.3 3.4 3.0 3.7 2.36 1.52 1.35 1.64
7 Gross private domestic investment 0.9 2.5 3.0 1.6 0.16 0.44 0.53 0.28
8 Fixed investment 0.9 2.6 3.2 1.6 0.16 0.45 0.55 0.27
9 Nonresidential 1.3 2.3 3.1 1.5 0.18 0.31 0.42 0.20
10 Structures −2.0 0.3 1.9 −0.6 −0.06 0.01 0.06 −0.02
11 Equipment 3.8 1.7 2.5 1.0 0.19 0.08 0.12 0.05
12 Intellectual property products 1.0 4.0 4.4 3.2 0.06 0.21 0.23 0.17
13 Residential −0.4 3.5 3.5 1.9 −0.02 0.14 0.13 0.07
14 Change in private inventories --- --- --- --- 0.00 −0.01 −0.02 0.00
15 Government consumption expenditures and gross investment 3.7 2.1 2.4 2.1 0.62 0.34 0.40 0.35
16 Federal 3.6 2.8 2.4 2.7 0.22 0.17 0.15 0.17
17 National defense 3.8 2.7 1.9 2.3 0.13 0.09 0.07 0.08
18 Nondefense 3.2 3.0 3.2 3.1 0.09 0.08 0.08 0.08
19 State and local 3.9 1.6 2.4 1.8 0.40 0.17 0.25 0.19
Addenda:
  Gross domestic purchases:                
20 Food 2.3 −0.5 1.3 2.8 0.12 −0.02 0.07 0.14
21 Energy goods and services −1.3 2.5 −12.6 −4.2 −0.03 0.06 −0.34 −0.11
22 Excluding food and energy 3.2 2.6 2.4 2.3 2.95 2.41 2.22 2.17
  Personal consumption expenditures:                
23 Food and beverages purchased for off-premises consumption 2.1 −0.4 1.6 2.7 --- --- --- ---
24 Energy goods and services −1.2 2.4 −12.4 −4.2 --- --- --- ---
25 Excluding food and energy 3.7 2.8 2.2 2.6 --- --- --- ---
26 Gross domestic product 3.0 2.5 1.9 2.3 --- --- --- ---
27 Exports of goods and services 2.5 2.7 −0.9 0.2 --- --- --- ---
28 Imports of goods and services 2.6 2.1 −0.2 −0.3 --- --- --- ---
  1. The estimated prices for gross domestic purchases under the contribution columns are also percent changes.

Note. Most percent changes are from National Income and Product Accounts (NIPA) table 1.6.7; percent changes for personal consumption expenditures (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.

The increase in fourth-quarter real GDP was revised up 0.1 percentage point from the second estimate. The updated estimates primarily reflected a downward revision to imports, upward revisions to nonresidential fixed investment, exports, and state and local government spending as well as downward revisions to consumer spending and private inventory investment (table 5).

  • Within imports, the revision was led by services, notably, charges for the use of intellectual property and financial services.
  • Within nonresidential fixed investment, the revision reflected an upward revision to structures, led by new commercial and health care structures.
  • For exports, the revision was led by an upward revision to services, mainly charges for the use of intellectual property.
  • Within state and local government spending, the upward revision was led by gross investment in structures, mainly new educational structures.
  • The downward revision to consumer spending reflected a downward revision to services that was partly offset by an upward revision to goods. Within services, the downward revision was led by final consumption expenditures of nonprofit institutions, led by nonprofit hospitals.
  • Within private inventory investment, the downward revision was led by construction, mining, and utilities.
Table 5. “Second” and “Third” Estimates for the Fourth Quarter of 2024
[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 GDP1 2.3 2.4 0.1 2.3 2.4 0.1
2 Personal consumption expenditures 4.2 4.0 −0.2 2.79 2.70 −0.09
3 Goods 6.1 6.2 0.1 1.27 1.30 0.03
4 Durable goods 12.1 12.4 0.3 0.86 0.87 0.01
5 Nondurable goods 3.0 3.1 0.1 0.41 0.42 0.01
6 Services 3.3 3.0 −0.3 1.53 1.41 −0.12
7 Gross private domestic investment −5.7 −5.6 0.1 −1.05 −1.03 0.02
8 Fixed investment −1.4 −1.1 0.3 −0.24 −0.20 0.04
9 Nonresidential −3.2 −3.0 0.2 −0.45 −0.41 0.04
10 Structures 1.1 2.9 1.8 0.04 0.09 0.05
11 Equipment −9.0 −8.7 0.3 −0.49 −0.47 0.02
12 Intellectual property products 0.0 −0.5 −0.5 0.00 −0.03 −0.03
13 Residential 5.4 5.5 0.1 0.21 0.22 0.01
14 Change in private inventories --- --- --- −0.81 −0.84 −0.03
15 Net exports of goods and services --- --- --- 0.12 0.26 0.14
16 Exports −0.5 −0.2 0.3 −0.05 −0.01 0.04
17 Goods −4.8 −4.6 0.2 −0.34 −0.33 0.01
18 Services 7.7 8.5 0.8 0.29 0.32 0.03
19 Imports −1.2 −1.9 −0.7 0.17 0.27 0.10
20 Goods −5.0 −4.9 0.1 0.58 0.57 −0.01
21 Services 15.3 10.9 −4.4 −0.41 −0.30 0.11
22 Government consumption expenditures and gross investment 2.9 3.1 0.2 0.49 0.52 0.03
23 Federal 4.0 4.0 0.0 0.25 0.25 0.00
24 National defense 4.7 4.8 0.1 0.17 0.18 0.01
25 Nondefense 2.9 2.9 0.0 0.08 0.08 0.00
26 State and local 2.2 2.5 0.3 0.23 0.27 0.04
  Addenda:
27 Final sales of domestic product 3.2 3.3 0.1 --- --- ---
28 GDI2 --- 4.5 --- --- --- ---
29 Average of GDP and GDI --- 3.5 --- --- --- ---
30 Gross domestic purchases price index 2.3 2.2 −0.1 --- --- ---
31 GDP price index 2.4 2.3 −0.1 --- --- ---
GDI
Gross domestic income
GDP
Gross domestic product

Note. Percent changes are from National Income and Product Account (NIPA) tables 1.1.1, contributions to percent change are from NIPA table 1.1.2, and shares are from NIPA table 1.1.10.

  1. The GDP estimates under the contribution columns are also percent changes.
  2. GDI is deflated by the implicit price deflator for GDP.

Measured in current dollars, profits from current production (corporate profits with the inventory valuation adjustment (IVA) and the capital consumption adjustment (CCAdj)) increased $204.7 billion, or 5.4 percent at a quarterly rate, in the fourth quarter after decreasing $15.0 billion, or 0.4 percent, in the third quarter (table 6). Profits of domestic financial corporations increased $69.4 billion, profits of domestic nonfinancial corporations increased $53.1 billion, and rest-of-the-world profits increased $82.2 billion.

Table 6. Corporate Profits
[Seasonally adjusted]
Line Series Billions of dollars (annual rate) Percent change from preceding quarter (quarterly rate)
Level Change from preceding quarter
2024
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
  Current production measures:                  
1 Corporate profits with IVA and CCAdj 4,007.0 −65.1 132.5 −15.0 204.7 −1.7 3.6 −0.4 5.4
2 Domestic industries 3,487.8 −67.5 151.2 27.9 122.5 −2.1 4.7 0.8 3.6
3 Financial 718.7 57.4 42.5 3.0 69.4 10.5 7.0 0.5 10.7
4 Nonfinancial 2,769.1 −124.9 108.8 24.9 53.1 −4.6 4.2 0.9 2.0
5 Rest of the world 519.2 2.3 −18.8 −42.9 82.2 0.5 −3.8 −8.9 18.8
6 Receipts from the rest of the world 1,049.1 25.7 4.4 −61.5 97.2 2.6 0.4 −6.1 10.2
7 Less: Payments to the rest of the world 529.9 23.4 23.1 −18.7 15.0 4.8 4.5 −3.5 2.9
8 Less: Taxes on corporate income 694.9 0.0 27.6 −2.0 21.2 0.0 4.3 −0.3 3.1
9 Equals: Profits after tax 3,312.0 −65.1 104.9 −13.1 183.5 −2.1 3.5 −0.4 5.9
10 Net dividends 1,993.6 35.0 0.3 −13.2 10.8 1.8 0.0 −0.7 0.5
11 Undistributed profits from current production 1,318.4 −100.1 104.6 0.1 172.7 −8.8 10.0 0.0 15.1
12 Net cash flow with IVA 3,954.3 −92.5 169.8 15.6 217.8 −2.5 4.8 0.4 5.8
CCAdj
Capital consumption adjustment
IVA
Inventory valuation adjustment

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

Industry profits (corporate profits by industry with IVA) increased $209.2 billion, or 5.1 percent at a quarterly rate, in the fourth quarter after decreasing $8.6 billion, or 0.2 percent, in the third quarter (chart 7 and table 7). Domestic profits increased $127.0 billion in the fourth quarter, primarily reflecting an increase in domestic financial industries and manufacturing.

Profits after tax (without IVA and CCAdj)—BEA's profits measure that is conceptually most like the profits for companies in the S&P 500 index—increased $228.4 billion in the fourth quarter after decreasing $10.0 billion in the third quarter.

Chart 7. Corporate Profits with Inventory Valuation Adjustment in 2024:Q4, Change From Preceding Quarter

[Click chart to expand]

Table 7. 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
2024
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
  Industry profits:                  
1 Corporate profits with IVA 4,285.4 17.8 138.9 −8.6 209.2 0.5 3.5 −0.2 5.1
2 Domestic industries 3,766.3 15.4 157.7 34.3 127.0 0.4 4.6 1.0 3.5
3 Financial 822.5 63.9 44.7 5.6 71.0 10.0 6.4 0.8 9.4
4 Nonfinancial 2,943.8 −48.5 113.0 28.7 56.0 −1.7 4.1 1.0 1.9
5 Utilities 61.6 7.7 9.3 −9.0 3.7 15.4 16.2 −13.5 6.4
6 Manufacturing 722.4 −86.7 51.3 −4.0 31.4 −11.9 8.0 −0.6 4.5
7 Wholesale trade 288.7 −17.9 1.8 −4.2 6.9 −5.9 0.6 −1.5 2.5
8 Retail trade 404.8 −2.9 5.8 22.7 2.4 −0.8 1.6 6.0 0.6
9 Transportation and warehousing 131.6 2.8 0.1 −1.3 3.5 2.2 0.0 −1.0 2.7
10 Information 296.7 20.3 22.3 5.3 18.6 8.8 8.9 1.9 6.7
11 Other nonfinancial 1,038.0 28.3 22.4 19.3 −10.5 2.9 2.2 1.9 −1.0
12 Rest of the world 519.2 2.3 −18.8 −42.9 82.2 0.5 −3.8 −8.9 18.8
  Addenda:
13 Profits before tax (without IVA and CCAdj) 4,326.3 75.3 125.7 −12.0 249.6 1.9 3.2 −0.3 6.1
14 Profits after tax (without IVA and CCAdj) 3,631.4 75.3 98.1 −10.0 228.4 2.3 3.0 −0.3 6.7
15 IVA −40.9 −57.5 13.2 3.4 −40.4 --- --- --- ---
16 CCAdj −278.5 −82.9 −6.4 −6.4 −4.5 --- --- --- ---
CCAdj
Capital consumption adjustment
IVA
Inventory valuation adjustment

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

Real GDP increased 2.8 percent in 2024 (from the 2023 annual level to the 2024 annual level), compared with an increase of 2.9 percent in 2023. The increase in real GDP in 2024 reflected increases in consumer spending, nonresidenial fixed investment, state and local government spending, and exports. Imports increased (chart 8 and table 8).

  • The increase in consumer spending reflected increases in both services and goods. Within services, the leading contributor to the increase was health care (both outpatient services and hospital and nursing home services). Within goods, the leading contributors were other nondurable goods (led by pharmaceuticals) and recreational goods and vehicles (led by information processing equipment).
  • Within nonresidential fixed investment, the increase was led by intellectual property products (mainly software) and equipment (both information processing equipment and transportation equipment).
  • Within state and local government spending, the increase was led by gross investment in structures and compensation of employees.
  • Within exports, both services and goods increased. The increase in services was led by an increase in travel and “other business services.” The increase in goods was led by capital goods, except automotive.

The price index for gross domestic purchases increased 2.4 percent in 2024, compared with an increase of 3.3 percent in 2023. The PCE price index increased 2.5 percent, compared with an increase of 3.8 percent. Excluding food and energy prices, the PCE price index increased 2.8 percent, compared with an increase of 4.1 percent.

Real GDI increased 3.0 percent in 2024 after increasing 1.7 percent in 2023. The average of real GDP and real GDI increased 2.9 percent in 2024, compared with an increase of 2.3 percent in 2023.

Chart 8. Real GDP: Contributions to the Percent Change in 2024

[View larger chart]
Table 8. Real Gross Domestic Product and Related Measures, Annual
Line Series Share of current-dollar GDP
(percent)		 Change from preceding period
(percent)		 Contribution to percent change in real GDP
(percentage points)
2024 2023 2024 2023 2024
1 GDP1 100.0 2.9 2.8 2.9 2.8
2 Personal consumption expenditures 67.9 2.5 2.8 1.72 1.87
3 Goods 21.4 1.9 2.4 0.42 0.51
4 Durable goods 7.4 3.9 3.3 0.31 0.25
5 Nondurable goods 14.0 0.8 1.9 0.12 0.27
6 Services 46.5 2.9 2.9 1.30 1.35
7 Gross private domestic investment 18.1 0.1 4.0 0.02 0.73
8 Fixed investment 17.9 2.4 3.7 0.43 0.66
9 Nonresidential 13.8 6.0 3.6 0.81 0.49
10 Structures 3.1 10.8 3.5 0.32 0.11
11 Equipment 5.2 3.5 3.4 0.18 0.17
12 Intellectual property products 5.5 5.8 3.9 0.31 0.21
13 Residential 4.1 −8.3 4.2 −0.37 0.17
14 Change in private inventories 0.2 --- --- −0.41 0.06
15 Net exports of goods and services −3.1 --- --- 0.49 −0.37
16 Exports 10.9 2.8 3.3 0.31 0.36
17 Goods 7.1 2.3 2.2 0.17 0.16
18 Services 3.8 3.8 5.4 0.14 0.20
19 Imports 14.0 −1.2 5.3 0.17 −0.73
20 Goods 11.2 −1.8 4.8 0.22 −0.53
21 Services 2.8 1.6 7.4 −0.05 −0.20
22 Government consumption expenditures and gross investment 17.1 3.9 3.4 0.66 0.58
23 Federal 6.4 2.9 2.6 0.19 0.16
24 National defense 3.7 3.2 3.1 0.12 0.11
25 Nondefense 2.7 2.5 1.8 0.07 0.05
26 State and local 10.7 4.4 3.9 0.47 0.41
Addenda:
27 GDI2 --- 1.7 3.0 --- ---
28 Average of GDP and GDI --- 2.3 2.9 --- ---
GDI
Gross domestic income
GDP
Gross domestic product
  1. The GDP estimates under the contribution columns are also percent changes.
  2. GDI is deflated by the implicit price deflator for GDP. It is not estimated with the fourth-quarter advance or second estimates.

Note. Percent changes are from National Income and Product Accounts (NIPA) table 1.1.1, contributions to percent change are from NIPA table 1.1.2, and shares are from NIPA table 1.1.10.

For GDP by industry in 2024, private goods-producing industries increased 3.4 percent, private services-producing industries increased 2.8 percent, and government increased 1.9 percent (table 9). Overall, 19 of 22 industry groups contributed to the increase (chart 9).

  • Within private goods-producing industries, the leading contributors were nondurable-goods manufacturing and construction.
  • Within private services-producing industries, the leading contributors to the increase were retail trade; health care and social assistance; and professional, scientific, and technical services.
  • The increase in government reflected an increase in state and local government.
Table 9. Real Gross Domestic Product by Industry Group and Related Measures, Annual
Line Series Share of current-dollar GDP
(percent)		 Change from preceding period
(percent)		 Contribution to percent change in real GDP
(percentage points)
2024 2023 2024 2023 2024
1 GDP 100.0 2.9 2.8 2.9 2.8
2 Private industries 88.7 3.0 2.9 2.67 2.58
3 Agriculture, forestry, fishing, and hunting 0.9 3.8 5.2 0.04 0.05
4 Mining 1.3 33.6 1.0 0.48 0.01
5 Utilities 1.5 4.9 0.0 0.08 0.00
6 Construction 4.5 −2.3 5.2 −0.10 0.23
7 Manufacturing 10.0 0.3 2.8 0.03 0.27
8 Durable goods 5.3 −0.9 −0.5 −0.05 −0.02
9 Nondurable Goods 4.7 1.6 6.6 0.08 0.29
10 Wholesale trade 5.8 −0.5 0.8 −0.03 0.05
11 Retail trade 6.3 10.9 9.0 0.67 0.56
12 Transporation and warehousing 3.3 1.5 1.8 0.05 0.06
13 Information 5.4 8.6 4.4 0.44 0.24
14 Finance, insurance, real estate, rental, and leasing 21.2 1.2 1.6 0.25 0.35
15 Finance and insurance 7.4 −0.9 1.9 −0.07 0.14
16 Real estate and rental and leasing 13.8 2.4 1.5 0.32 0.21
17 Professional and business services 13.2 2.6 2.7 0.34 0.35
18 Professional, scientific, and technical services 8.2 4.1 3.7 0.32 0.30
19 Management of companies and enterprises 1.8 1.6 2.1 0.03 0.04
20 Administrative and waste management services 3.2 −0.5 0.4 −0.02 0.01
21 Educational services, health care, and social assistance 8.7 4.7 4.3 0.39 0.37
22 Educational services 1.1 2.1 1.9 0.02 0.02
23 Health care and social assistance 7.6 5.1 4.7 0.37 0.35
24 Arts, entertainment, recreation, accomodation, and food services 4.4 3.0 1.3 0.13 0.06
25 Arts, entertainment, and recreation 1.2 4.3 5.5 0.05 0.06
26 Accommodation and food services 3.3 2.6 −0.1 0.08 0.00
27 Other services, except government 2.1 −5.0 −1.3 −0.11 −0.03
28 Government 11.3 2.1 1.9 0.24 0.22
29 Federal 3.6 0.3 0.7 0.01 0.03
30 State and local 7.7 3.0 2.5 0.23 0.19
  Addenda:
31 Private goods-producing industries1 16.7 2.6 3.4 0.46 0.56
32 Private services-producing industries2 72.0 3.1 2.8 2.21 2.02
GDP
Gross domestic product
  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 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.”

Chart 9. Contributions to Percent Change in Real GDP by Industry Group, 2024

[Click chart to expand]

  1. “Real” estimates are in chained (2017) 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 Dennis J. Fixler, Eva de Francisco, and Ian Schaaf, “Revisions to Gross Domestic Product, Gross Domestic Income, and Their Major Components,” Survey of Current Business (August 27, 2024). 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.”