Consumption was the largest contributor to GDP, accounting for 1.3% of growth, down from 1.7% during the fourth quarter. Consumption spending grew by $52.5 billion during the first quarter of 2016, compared to $68.3 billion during the fourth quarter of 2015.
Non-residential fixed investment was a significant drag on GDP, subtracting 0.8% from growth. The fall in non-residential investment was partially offset by a $19.4 billion increase in residential fixed investment, which contributed 0.5% to GDP.
Inventories subtracted 0.3% from GDP growth in the first quarter, as both farm and nonfarm private inventories declined. Net exports also subtracted 0.3% from GDP growth, as the decline in exports was greater than the decline in imports.
State and local government spending grew during the quarter, contributing 0.3% to GDP. This was offset by a decrease in Federal government spending, which was a 0.11% drag.
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