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THURSDAY May 25, 2006 GDP GROWTH REVISED UP IN FIRST QUARTER Corporate Profits Remained Strong The economy grew at an annual rate of 5.3 percent in the first quarter, according to the “preliminary” estimates released by the U.S. Bureau of Economic Analysis. The growth rate was revised up 0.5 percentage point from the “advance” estimates released in April. BEA also released its first estimate of first-quarter corporate profits, which increased 23.8 percent from the same quarter a year ago. Gross Domestic Product (GDP) The acceleration in first-quarter GDP growth primarily reflected an upturn in consumer spending on durable goods, an acceleration in exports, an upturn in Federal government spending, and a pick-up in equipment-andsoftware investment. The upward revision from the advance estimates mainly reflected revisions to inventory investment and to exports. Quarter-to-Quarter Growth in Real GDP 8 Percent 6 4 2 0 II III 2002 IV I II III 2003 IV I II III 2004 IV I II III 2005 IV I 2006 Real GDP growth is measured at seasonally adjusted annual rates. Corporate Profits First-quarter corporate profits increased 23.8 percent from the same quarter a year ago. Profits of nonfinancial corporations increased 26.5 percent, and profits of financial corporations increased 19.0 percent. Year-over-Year Growth in Corporate Profits 25 Percent 20 15 10 5 0 II III 2002 IV I II 2003 III IV I II III 2004 IV I II III 2005 IV I 2006 Corporate profits growth is measured as the percent change from the same quarter one year ago. BEA data—including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts, and economic data for states, local areas, and industries—are available on the BEA Web site: www.bea.gov. E-mail alerts are also available. NOTE: The “final” estimate of GDP for the first quarter of 2006 will be released on June 29, 2006. Contact: Ralph Stewart 202–606–2649 Bureau of Economic Analysis, U.S. Department of Commerce