Wednesday, June 24, 2015

GDP Fell 0.2% in the First Quarter

U.S. Real GDP for the first quarter decreased at a rate of 0.2%, according to the third estimate released by the Bureau of Economic Analysis. The second estimate had reported a 0.7% decline.

The upward revision reflected stronger personal consumption expenditures (PCE) than previously estimated. The decline in exports was also less than previously estimated, but was offset by an increase in imports.

Net exports were ultimately the largest drag on GDP, decreasing 5.9% in the first quarter, after gaining 4.5% in the fourth.

Real personal consumption increased 2.1% in the first quarter, a much slower rate compared to the 4.4% growth in the previous quarter. Real nonresidential fixed investment decreased 2.0% in the first quarter, in contrast to an increase of 4.7% in the fourth quarter. Real federal government spending was unchanged this quarter after falling 7.3% in the fourth quarter.

Read the BEA release.

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