Business situation: final estimates for the second quarter of 2004

According to the "final" estimates of the national income and product accounts (NIPAs), real gross domestic product (GDP) increased 3.3% in the second quarter of 2004. The "preliminary" estimates released in August showed a 2.8% increase for the quarter. The upward revision to GDP mainly reflected revisions to imports, to private inventory investment, and to exports. Most major components of GDP contributed to the 3.3% second-quarter increase. Profits from current production increased $8.3 billion (0.7% at a quarterly rate) in the second quarter of 2004 after increasing $36.5 billion (3.2%) in the first quarter. The slowdown mainly reflected a downturn in profits of domestic financial corporations; in addition, profits from the rest of the world decreased more than in the first quarter.