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FRIDAY, May 29, 2009 GDP DECLINES 5.7 PERCENT IN FIRST QUARTER Corporate Profits Rise Real gross domestic product (GDP) declined 5.7 percent in the first quarter of 2009 after decreasing 6.3 percent in the fourth quarter of 2008, according to the “preliminary” estimates of the Bureau of Economic Analysis. The first-quarter growth rate was revised up 0.4 percentage point from the “advance” estimate released in April. Gross Domestic Product (GDP) As in the earlier estimate, consumer spending turned up, rising 1.5 percent in the first quarter after falling for two quarters. Exports, housing, and business investment, including inventory investment, continued to decline sharply. Quarter-to-Quarter Growth in Real GDP 7 5 Percent 3 1 -1 -3 -5 -7 II III 2005 IV I II III 2006 IV I II III 2007 IV I II III 2008 IV I 2009 Real GDP growth is measured at seasonally adjusted annual rates. Corporate Profits Corporate profits rose 3.4 percent at a quarterly rate in the first quarter, after falling 16.5 percent in the fourth quarter. Financial sector profits rose 94.9 percent in the first quarter, while nonfinancial sector profits fell 8.6 percent. Quarter-to-Quarter Growth in Corporate Profits 20 15 10 Percent 5 0 -5 -10 -15 -20 II III IV I 2005 II 2006 III IV I II III 2007 IV I II III 2008 IV I 2009 Corporate profits growth is measured as the percent change from the previous quarter. 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: Additional information that becomes available in the coming weeks will be incorporated in a “final” estimate of first-quarter GDP on June 25, 2009. A final estimate of corporate profits will also be released. Contact: Ralph Stewart or Thomas Dail (202) 606-2649 Bureau of Economic Analysis, U.S. Department of Commerce