U.S. economy expanded at 3.0% in the first quarter after surging at 5.6% in the fourth. The price index of gross domestic purchases increased 1.4% in the quarter compared to 1.7% in the fourth. Change in private inventories added 1.65% compared to 3.79% in the fourth.
The following is an unedited transcript released by Bureau of Economic Analysis, U.S. Department of Commerce, Washington, DC and available at:
Gross Domestic Product: First Quarter 2010 (Second Estimate)
Corporate Profits: First Quarter 2010 (Preliminary Estimate)
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 3.0 percent in the first quarter of 2010, (that is, from the fourth quarter to the first quarter), according to the """"second"""" estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP had increased 5.6 percent.
The GDP estimates released today are 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 3.2 percent (see """"Revisions"""" on page 3).
The increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures (PCE), private inventory investment, exports, and nonresidential fixed investment that were partly offset by negative contributions from state and local government spending and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
The deceleration in real GDP in the first quarter primarily reflected decelerations in private inventory investment and in exports, a downturn in residential fixed investment, a larger decrease in state and local government spending, and a deceleration in nonresidential fixed investment that were partly offset by an acceleration in PCE and a deceleration in imports.
Motor vehicle output added 0.49 percentage point to the first-quarter change in real GDP after adding 0.45 percentage point to the fourth-quarter change. Final sales of computers added 0.18 percentage point to the first-quarter change in real GDP after adding 0.01 percentage point to the fourth-quarter change.
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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 (2005) 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.
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The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 1.7 percent in the first quarter, the same increase as in the advance estimate; this index increased 2.0 percent in the fourth quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 1.1 percent in the first quarter, compared with an increase of 1.5 percent in the fourth. The federal pay raise for civilian and military personnel added 0.2 percentage point to the first-quarter increase in the gross domestic purchases price index.
Real personal consumption expenditures increased 3.5 percent in the first quarter, compared with an increase of 1.6 percent in the fourth. Real nonresidential fixed investment increased 3.1 percent, compared with an increase of 5.3 percent. Nonresidential structures decreased 15.3 percent, compared with a decrease of 18.0 percent. Equipment and software increased 12.7 percent, compared with an increase of 19.0 percent. Real residential fixed investment decreased 10.7 percent, in contrast to an increase of 3.8 percent.
Real exports of goods and services increased 7.2 percent in the first quarter, compared with an increase of 22.8 percent in the fourth. Real imports of goods and services increased 10.4 percent, compared with an increase of 15.8 percent.
Real federal government consumption expenditures and gross investment increased 1.2 percent in the first quarter, compared with no change in the fourth. National defense increased 1.1 percent, in contrast to a decrease of 3.6 percent. Nondefense increased 1.5 percent, compared with an increase of 8.3 percent. Real state and local government consumption expenditures and gross investment decreased 3.9 percent, compared with a decrease of 2.2 percent.
The change in real private inventories added 1.65 percentage points to the first-quarter change in real GDP, after adding 3.79 percentage points to the fourth-quarter change. Private businesses increased inventories $33.9 billion in the first quarter, following decreases of $19.7 billion in the fourth quarter and $139.2 billion in the third.
Real final sales of domestic product -- GDP less change in private inventories -- increased 1.4 percent in the first quarter, compared with an increase of 1.7 percent in the fourth.
Gross domestic purchases
Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 3.6 percent in the first quarter, compared with an increase of 5.2 percent in the fourth.
Gross national product
Real gross national product -- the goods and services produced by the labor and property supplied by U.S. residents -- increased 3.9 percent in the first quarter, compared with an increase of 5.0 percent in the fourth. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which increased $27.7 billion in the first quarter after decreasing $14.5 billion in the fourth; in the first quarter, receipts increased $22.7 billion, and payments decreased 5.0 billion.
