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Blog Category: Gdp

BEA in the 1940s

Submitted on April 6, 2012 - 10:00am
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Graph of rise of GDP

Ed. Note: This post is part of a series following the release of the 1940 Census highlighting various Commerce agencies and their hard work on behalf of the American people during the 1940s through today.

As the U.S. population has changed dramatically since 1940, so too has the U.S. economy. Just a few years prior to the 1940 Census, in 1935, employees of the Department of Commerce and the National Bureau of Economic Research created what we call the National Income and Product Accounts (NIPA), a comprehensive set of economic accounts for the nation that provides unparalleled insight into the workings of our economy.
 
Let’s take a quick glance at the NIPAs and see how things have changed over the last 72 years. One commonly used measure of standards of living is GDP per capita—the total output of the nation divided by the population. Looking to national accounts table 7.1, we see that in 1940 U.S. GDP per capita was $8,824 in inflation-adjusted dollars. By 2011, it had increased nearly fivefold to $42,671. Over that period, the structure of the economy changed with services accounting for an ever increasing for spending. In 1940, consumer spending on services (everything from haircuts to heart surgery), according to NIPA table 1.1.10 accounted for 30 percent of GDP. By 2011, it was 47 percent—nearly half of economic activity.

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The American Jobs Act: GDP Growth and Job Creation

Submitted on October 27, 2011 - 10:00am
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The American Jobs Act Banner

Today, the Bureau of Economic Analysis (BEA) released the advanced estimate for the 3rd quarter 2011 Gross Domestic Product. The report said the U.S. economy grew 2.5% in the third quarter, compare with 1.3% in second quarter of 2011. This is a tremendous step-up from the 0.4% growth in the first quarter and 1.3% in the second quarter of 2011. The good news is that consumers increased their spending, businesses continue to invest, and our exports grew, but continued growth is vital. U.S. Commerce Secretary John Bryson said this morning, “In spite of headwinds hitting the U.S. economy, today’s GDP report – the ninth straight positive quarter – reflects strong consumer spending and export growth and continued investment by American businesses.”

This growth comes at a time when only two months ago there were fears of a double dip recession and the volatile stock market resembled a wild roller coaster. Consumer spending, factory production and exports all have increased. This type of growth to GDP shows encouraging signs of a growing and improving economy, but faster growth is needed to replace the jobs lost in the recent downturn and to reduce long-term unemployment. That's why the President has offered his American Jobs Act.

The President’s American Jobs Act has been supported by economists across the political spectrum. They have said repeatedly it will create jobs and boost economic growth.  Susan Wachter, a finance professor at the University of Pennsylvania’s Wharton School suggests, Social Security tax cuts would not only grow the economy, but create 1 million jobs in the next year. Mark Zandi, of Moody Analytics, says the American Jobs Act creatively helps fuel growth for small businesses who have been hurt most by the recession. He projects that the American Jobs Act would grow the economy at an additional 2 percentage points and add 1.9 million jobs all in 2012. 

Focusing on durable goods, preventing teacher layoffs and keeping first responders on the job, and cutting payroll taxes which will support consumer spending are three of the many measures included in the American Jobs Act that will continue to grow the economy and create more jobs. All of this will be fully paid for as part of the President’s long-term deficit reduction plan. See all of the details of the American Jobs Act on the White House blog.

Measuring America’s People, Places and our Economy

Submitted on September 13, 2011 - 3:00pm
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United States Census Bureau Logo

Our name, the Census Bureau, suggests to many only the decennial census of the population. However, we have more individual statistical programs measuring the economy than those measuring the population. From the Census Bureau, the country learns the economic health of the manufacturing, retail, and other service sectors. The Census Bureau supplies the country with key import and export data, which measure the relative success of American goods abroad and our consumption of other countries’ products. We track the construction of new homes and how housing starts are changing across the country. We measure the fiscal condition of state and local governments. We inform the country about the annual financial position of US corporations and on capital investment in new and used structures and equipment together with expenses for information and communications technology infrastructure. We measure the volume and change in businesses owned by women and minorities. There are hundreds of separate statistical programs that we run, which in these times of economic hardship, are the key metrics about how we’re doing as an economy.

The data provided by the Census Bureau underlies much about what we know about our economy and our people. For example, the Bureau of Economic Analysis uses the statistics from the economic census to benchmark gross domestic product (GDP) estimates and prepare input-output tables – the fundamental tool for national and regional economic planning. During benchmark years, such as 2012, about 90 percent of the data used in calculating GDP comes from the Census Bureau. The Bureau of Labor Statistics uses Census Bureau statistics to benchmark producer price indexes and prepare productivity statistics. The Federal Reserve Board uses our statistics to prepare indexes of industrial production.

Businesses use our statistics for site location, industry and market analysis, to make investment and production decisions, to gauge competitiveness, and to identify entrepreneurial opportunities. Detailed industry information for small geographic areas permits state and local agencies to forecast economic conditions, plan economic development, transportation, and social services. Watch how the Greater Houston Partnership finds that data from the American Community Survey and uses it to encourage economic development in Houston.

As you can see, the Census Bureau is about much more than just counting the population once a decade. By measuring America’s people, places and our economy, the Census Bureau provides a wealth of information about who we are as a society and where we are going.

Statement From Secretary Locke on the Advance Estimate of Real GDP in the Second Quarter of 2010

Submitted on July 30, 2010 - 10:30am
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The U.S. Commerce Department’s Bureau of Economic Analysis today released the first estimate of gross domestic product (GDP) for the second quarter of 2010.  Real GDP grew 2.4 percent at an annual rate in the second quarter, following a gain of 3.7 percent in the first quarter.  The annual revision to the national accounts increased the total fall in real GDP during the recession from 3.7 percent to 4.1 percent.  The economy has grown 3.2 percent from a year ago.  Statement

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