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THURSDAY, June 26, 2008

GDP GREW 1.0 PERCENT IN THE FIRST QUARTER
Estimates of GDP
The economy grew at an annual rate of 1.0 percent in the first quarter, compared with 0.6 percent in the fourth
quarter, according to the Bureau of Economic Analysis. The estimate of first-quarter gross domestic product
(GDP) growth is 0.1 percentage point higher than previously estimated.
Gross Domestic Product
The continuing slow growth of the economy reflected continuing weakness in residential housing, downturns in
consumer spending on durable and nondurable goods, and slower growth in business investment.
The slight revision to first-quarter growth reflected upward revisions to exports, consumer spending, and
business investment in equipment and software.
Quarter-to-Quarter Growth in Real GDP
6

Percent

4

2

0
II

III
2004

IV

I

II
III
2005

IV

I

II
III
2006

IV

I

II
III
2007

IV

I
2008

Real GDP growth is measured at seasonally adjusted annual rates.

Corporate Profits
First-quarter corporate profits grew 1.0 percent from the first quarter of 2007. In the fourth quarter, profits grew
2.5 percent. First-quarter profits declined for domestic financial corporations and nonfinancial corporations,
while net profits from abroad rose.
Year-over-Year Growth in Corporate Profits
30
25

Percent

20
15
10
5
0
II

III

2004

IV

I

II

2005

III

IV

I

II

III

IV

I

2006

II

2007

III

IV

I

2008

Corporate profits growth is measured as the percent change from a 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 2005 through the first quarter of
2008, will be released with the “advance” estimate of GDP for the second quarter of 2008 on July 31, 2008.
Contact: Ralph Stewart 202–606–2649

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