Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 4.6 percent in the second quarter of 2014, according to the "third" estimate released by the Bureau of Economic Analysis.  In the first quarter, real GDP decreased 2.1 percent.        The GDP estimate released today is based on more complete source data than were available for the "second" estimate issued last month.  In the second estimate, the increase in real GDP was 4.2 percent.  With the third estimate for the second quarter, the general picture of economic growth remains the same; increases in nonresidential fixed investment and in exports were larger than previously estimated (for more information, see "Revisions" on page 3).        The increase in real GDP in the second quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, private inventory investment, nonresidential fixed investment, state and local government spending, and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.        Real GDP increased 4.6 percent in the second quarter, after decreasing 2.1 percent in the first. This upturn in the percent change in real GDP primarily reflected upturns in exports and in private inventory investment, accelerations in nonresidential fixed investment and in PCE, and upturns in state and local government spending and in residential fixed investment that were partly offset by an acceleration in imports.  _____  FOOTNOTE.  Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise specified.  Quarter-to-quarter dollar changes are differences between these published estimates.  Percent changes are calculated from unrounded data and are annualized.  "Real" estimates are in chained (2009) dollars.  Price indexes are chain-type measures.  This news release is available on  BEA's Web site along with the  Technical Note and  Highlights related to  this release.  For information on revisions, see "The Revisions to GDP, GDI, and Their Major Components."  _____        The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 2.0 percent in the second quarter, 0.1 percentage point more than in the second estimate; this index increased 1.4 percent in the first quarter.  Excluding food and energy prices, the price index for gross domestic purchases increased 1.7 percent, compared with an increase of 1.3 percent.        Real personal consumption expenditures increased 2.5 percent in the second quarter, compared with an increase of 1.2 percent in the first.  Durable goods increased 14.1 percent, compared with an increase of 3.2 percent.  Nondurable goods increased 2.2 percent; it was unchanged in the first quarter. Services increased 0.9 percent, compared with an increase of 1.3 percent.        Real nonresidential fixed investment increased 9.7 percent in the second quarter, compared with an increase of 1.6 percent in the first.  Investment in nonresidential structures increased 12.6 percent, compared with an increase of 2.9 percent.  Investment in equipment increased 11.2 percent, in contrast to a decrease of 1.0 percent.  Investment in intellectual property products increased 5.5 percent, compared with an increase of 4.6 percent.  Real residential fixed investment increased 8.8 percent, in contrast to a decrease of 5.3 percent.        Real exports of goods and services increased 11.1 percent in the second quarter, in contrast to a decrease of 9.2 percent in the first.  Real imports of goods and services increased 11.3 percent, compared with an increase of 2.2 percent.        Real federal government consumption expenditures and gross investment decreased 0.9 percent in the second quarter, compared with a decrease of 0.1 percent in the first.  National defense increased 0.9 percent, in contrast to a decrease of 4.0 percent.  Nondefense decreased 3.8 percent, in contrast to an increase of 6.6 percent.  Real state and local government consumption expenditures and gross investment increased 3.4 percent, in contrast to a decrease of 1.3 percent.        The change in real private inventories added 1.42 percentage points to the second-quarter change in real GDP after subtracting 1.16 percentage points from the first-quarter change.  Private businesses increased inventories $84.8 billion in the second quarter, following increases of $35.2 billion in the first quarter and $81.8 billion in the fourth.        Real final sales of domestic product -- GDP less change in private inventories -- increased 3.2 percent in the second quarter, in contrast to a decrease of 1.0 percent in the first.   Gross domestic purchases        Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 4.8 percent in the second quarter, in contrast to a decrease of 0.4 percent in the first.   Gross national product        Real gross national product -- the goods and services produced by the labor and property supplied by U.S. residents -- increased 4.6 percent in the second quarter, in contrast to a decrease of 2.8 percent in the first.  GNP includes, and GDP excludes, net receipts of income from the rest of the world, which increased $1.4 billion in the second quarter, in contrast to a decrease of $27.4 billion in the first; in the second quarter, receipts increased $1.7 billion, and payments increased $0.4 billion.   Current-dollar GDP        Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 6.8 percent, or $284.2 billion, in the second quarter to a level of $17,328.2 billion.  In the first quarter, current-dollar GDP decreased 0.8 percent, or $34.3 billion.   Gross domestic income        Real gross domestic income (GDI), which measures the output of the economy as the costs incurred and the incomes earned in the production of GDP, increased 5.2 percent in the second quarter, in contrast to a decrease of 0.8 percent in the first.  For a given quarter, the estimates of GDP and GDI may differ for a variety of reasons, including the incorporation of largely independent source data. However, over longer time spans, the estimates of GDP and GDI tend to follow similar patterns of change.   Revisions        The upward revision to the percent change in real GDP primarily reflected upward revisions to nonresidential fixed investment and to exports.                                               Advance Estimate  Second Estimate  Third Estimate                                                   (Percent change from preceding quarter) Real GDP.....................................        4.0           4.2             4.6 Current-dollar GDP...........................        6.0           6.4             6.8 Real GDI.....................................         …            4.7             5.2 Gross domestic purchases price index.........        1.9           1.9             2.0                                                  Corporate Profits   Profits from current production        Profits from current production (corporate profits with inventory valuation adjustment (IVA) and capital consumption adjustment (CCAdj)) increased $164.1 billion in the second quarter, in contrast to a decrease of $201.7 billion in the first.        Profits of domestic financial corporations increased $33.3 billion in the second quarter, in contrast to a decrease of $86.2 billion in the first.  Profits of domestic nonfinancial corporations increased $134.3 billion, in contrast to a decrease of $89.6 billion.  The rest-of-the-world component of profits decreased $3.6 billion in the second quarter, compared with a decrease of $26.0 billion in the first.  This measure is calculated as the difference between receipts from the rest of the world and payments to the rest of the world.  In the second quarter, receipts increased $2.7 billion and payments increased $6.3 billion.        Taxes on corporate income increased $45.7 billion in the second quarter, compared with an increase of $66.9 billion in the first.  Profits after tax with IVA and CCAdj increased $118.4 billion, in contrast to a decrease of $268.6 billion.        Dividends decreased $0.5 billion in the second quarter, compared with a decrease of $89.5 billion in the first.  Undistributed profits increased $118.8 billion, in contrast to a decrease of $178.9 billion.  Net cash flow with IVA -- the internal funds available to corporations for investment -- increased $133.4 billion, in contrast to a decrease of $163.0 billion.        The IVA and CCAdj are adjustments that convert inventory withdrawals and depreciation of fixed assets reported on a tax-return, historical-cost basis to the current-cost economic measures used in the national income and product accounts.  IVA increased $11.9 billion in the second quarter, in contrast to a decrease of $21.6 billion.  CCAdj decreased $0.8 billion in the second quarter, compared with a decrease of $195.7 billion.   Corporate profits with IVA        Profits of domestic financial corporations increased $33.7 billion in the second quarter, in contrast to a decrease of $68.6 billion in the first.  Profits of domestic nonfinancial corporations increased $134.7 billion, compared with an increase of $88.5 billion.  The increase in profits of financial corporations reflected increases in "other" financial industries and in Federal Reserve banks.  The increase in profits of nonfinancial corporations was widespread; the largest industry contributors were manufacturing, information, and "other" nonfinancial.  Within manufacturing, the largest increases were in nondurable goods industries.   Gross value added of nonfinancial domestic corporate business        In the second quarter, real gross value added of nonfinancial corporations increased, and profits per unit of real value added increased.  The increase in unit profits reflected decreases in unit nonlabor and labor costs incurred by corporations and an increase in unit prices.         BEA's national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEA's Web site at  www.bea.gov.  By visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements.                                           *          *          *                          Next release -- October 30, 2014 at 8:30 A.M. EDT for:                  Gross Domestic Product:  Third Quarter 2014 (Advance Estimate)