Research >> Economics
1Q2016 GDP preliminary estimate increased 0.8%
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Real gross domestic product -- the value of the goods and services produced by the nation’s economy less the value of the goods and services used up in production, adjusted for price changes -- increased at an annual rate of 0.8 percent in the first quarter of 2016, according to the "second" estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 1.4 percent.
The GDP estimate released today is based on more complete source data than were available for the "advance" estimate issued last month. In the advance estimate, the increase in real GDP was 0.5 percent. With the second estimate for the first quarter, the decrease in private inventory investment was smaller than previously estimated.
The increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures (PCE), residential fixed investment, and state and local government spending that were partly offset by negative contributions from nonresidential fixed investment, exports, private inventory investment, and federal government spending. Imports, which are a subtraction in the calculation of GDP, decreased.
The deceleration in real GDP in the first quarter primarily reflected a larger decrease in nonresidential fixed investment, a deceleration in PCE, and a downturn in federal government spending that were partly offset by an upturn in state and local government spending, and an acceleration in residential fixed investment.
Real gross domestic income (GDI) -- the value of the costs incurred and the incomes earned in the production of goods and services in the nation’s economy -- increased 2.2 percent in the first quarter, compared with an increase of 1.9 percent (revised) in the fourth quarter. The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 1.5 percent in the first quarter, compared with an increase of 1.7 percent (revised) in the fourth quarter.
Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 1.0 percent in the first quarter, compared with an increase of 1.5 percent in the fourth.
The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 0.2 percent in the first quarter, compared with an increase of 0.4 percent in the fourth. Excluding food and energy prices, the price index for gross domestic purchases increased 1.4 percent, compared with an increase of 1.0 percent.
Current-dollar GDP -- the market value of the goods and services produced by the nation’s economy less the value of the goods and services used up in production -- increased 1.4 percent, or $64.7 billion, in the first quarter to a level of $18,229.5 billion. In the fourth quarter, current-dollar GDP increased 2.3 percent, or $104.6 billion.
The second estimate of the first quarter percent change in real GDP is 0.3 percentage point more than the advance estimate issued last month, primarily reflecting upward revisions to private inventory investment, to residential fixed investment, and to exports and a downward revision to imports.
Posted: May 27, 2016 Friday 08:30 AM