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THURSDAY, June 28, 2007

GDP GREW 0.7 PERCENT IN FIRST QUARTER
“Final” Estimate of GDP
The economy grew at an annual rate of 0.7 percent in the first quarter, 0.1 percentage point more than in the
“preliminary” estimate, according to the “final” estimates released by the Bureau of Economic Analysis. In the
fourth quarter of 2006, gross domestic product (GDP) grew 2.5 percent.
Gross Domestic Product
The deceleration in first-quarter GDP growth primarily reflected a downturn in net exports. The upward revision
reflected a revision to exports.

Quarter-to-Quarter Growth in Real GDP
8

Percent

6

4

2

0
II

III
2003

IV

I

II
III
2004

IV

I

II
III
2005

IV

I

II
III
2006

IV

I
2007

Real GDP growth is measured at seasonally adjusted annual rates.

Corporate Profits
First-quarter corporate profits increased 6.5 percent from the same quarter a year ago. Profits of financial
corporations increased 6.8 percent, and profits of nonfinancial corporations increased 0.7 percent.
In the fourth quarter of 2006, year-over-year profits grew 18.3 percent.

Year-over-Year Growth in Corporate Profits
30
25

Percent

20
15
10
5
0
II

III

2003

IV

I

II

2004

III

IV

I

II

III

2005

IV

I

II

2006

III

IV

I

2007

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 annual revision of the national income and product accounts, covering the first quarter of 2004 through the first quarter of
2007, will be released along with the “advance” estimate of GDP for the second quarter of 2007 on July 27.
Contact: Ralph Stewart 202–606–2649

Bureau of Economic Analysis, U.S. Department of Commerce