·
Real GDP last quarter was little revised, as expected. Component
revisions also were largely technical. Year to date growth in real GDP
has been 3.4% (AR).
· The previously reported strong growth in corporate profits after tax was revised up slightly to 8.8% (-0.9% y/y). Profits with IVA & CCA were also little revised and fell 6.9% (+12.2% y/y). Tax law changes greatly boosted the Capital Consumption Adjustment (depreciation) as of 4Q01. The CCA has fallen sharply since the 4Q peak.
· The effect from inventory accumulation was raised slightly.
· Domestic final demand growth was revised slightly lower led by a downward revision to residential investment, revised to show a 1.0% increase. Personal consumption growth was little revised at 4.2%.
· Capital spending declined 0.8%. Business spending on structures fell 21.3%. Spending on equipment rose 6.7% as a result of strength in spending on information processing equipment & software, up 13.7%.
· The trade sector's contribution to growth was little revised near zero as exports grew 4.7% (2.8% y/y). Imports grew 3.3% (6.7% y/y).
· Estimated inflation was unchanged.