Friday, May 29, 2015

U.S. Economy Shrank as GDP Declined 0.7% in the First Quarter

U.S. Real GDP for the first quarter decreased at a rate of 0.7%, according to the second estimate released by the Bureau of Economic Analysis. The decline is in stark contrast to the 2.2% growth in the fourth quarter of 2014.

The decline primarily reflected a deceleration in personal consumption expenditures (PCE) and downturns in exports, nonresidential fixed investment and state and local government spending that were partly offset by a deceleration in imports and upturns in federal government spending and in private inventory investment.

Real exports largely contributed to the decline, decreasing 7.6% in the first quarter compared to 4.5% growth in the fourth quarter.

Real personal consumption expenditures increased 1.8% in the first quarter, a much slower rate compared to the 4.4% growth the previous quarter. Real nonresidential fixed investment decreased 2.8% in the first quarter, in contrast to an increase of 4.7% in the fourth quarter. Real federal government spending increased 0.1% this quarter after falling 7.3% in the fourth quarter.

Read the BEA release.

No comments:

Post a Comment

Please read our comment policy before making a comment.