As a reminder, GDP is made up of:
Y=GDP, C=Consumption, I=Investment, G=Government Spending, (X-M)=Net Exports, X=Exports, M=Imports.
Here is the Q2 2010 advance report breakdown of GDP percentage points:
- C = +1.79
- I = +1.54
- G = +0.68
- X = +0.61
- M = –2.61
Changes in inventories contributed 1.44 of the total 2.0% or minus inventory changes, Q2 2010 GDP would have been 0.56%. Nonresidential fixed investment was +0.91, yet residential was --.80, so the two negated each other in fixed investment to contribute 0.10 of the 2.0% GDP change.
Below are real final sales of domestic product, or GDP - inventories change. This gives a better feel for real demand in the economy. Limp.
Below the the St. Louis FRED graph for C, or real personal consumption expenditures of the above GDP equation.
Below is the breakdown in C or real PCE annualized change. Notice when times are tough, durable goods (bright red) consumption drops. This quarter was an increase in services.
Imports literally wipes out GDP growth. The trade deficit now contributes -2.0 of the total 2.0% Q3 2010 GDP.
The below graph is real imports vs. exports. While exports increased, it is the trade deficit that matters and this quarter the change contribution, (-2.0 percentage points) is much less than last (-3.50 points in Q2 2010). Yet, one cannot claim because one is filling up a hole while someone else is digging it, abet at a much smaller pace, that's great for the economy.
Below are the percentage changes of GDP components in comparison to the revised second quarter of 2010:
- C = +2.6%
- I = +12.8%
- G = +3.4%
- X = +5.0%
- M = +17.4%
The BEA's comparisons in percentage change breakdown from Q2 2010 are below. Notice the decline in residential investment.
C: Real personal consumption expenditures increased 2.6% in the third quarter, compared with an increase of 2.2% in the second. Durable goods increased 6.1%, compared with an increase of 6.8%. Nondurable goods increased 1.3%, compared with an increase of 1.9%. Services increased 2.5%, compared with an increase of 1.6%.
I: Real nonresidential fixed investment increased 9.7% in the third quarter, compared with an increase of 17.2% in the second. Nonresidential structures increased 3.9%, in contrast to a decrease of 0.5%. Equipment and software increased 12.0%, compared with an increase of 24.8%. Real residential fixed investment decreased, -29.1%, in contrast to an increase of 25.7%.
X & M: Real exports of goods and services increased 5.0% in the third quarter, compared with an increase of 9.1% in Q2. Real imports of goods and services increased 17.4%, compared with an increase of 33.5%.
G: Real federal government consumption expenditures and gross investment increased 8.8% in Q3, compared with an increase of 9.1% in the second. National defense increased 8.5%, compared with an increase of 7.4%. Nondefense increased 9.6%, compared with an increase of 12.8%. Real state and local government consumption expenditures and gross investment decreased 0.2%, in contrast to an increase of 0.6%.
The BEA reports Motor Vehicles were 0.42 percentage points of GDP and Computers were 0.25 percentage points. Structures were a –0.53 percentage point of Q3 2010 GDP contribution.
Here are the graphs from Q2 2010 GDP, 3rd revision.