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THURSDAY, May 27, 2010 GDP GROWTH MODERATES IN FIRST QUARTER “Second” Estimate of GDP Real gross domestic product (GDP) increased 3.0 percent in the first quarter of 2010 after increasing 5.6 percent in the fourth quarter, according to estimates released by the Bureau of Economic Analysis. The first-quarter growth rate was revised down 0.2 percentage point from the “advance” estimate released in April. GDP highlights The moderation in real GDP growth from the fourth quarter primarily reflected a sharp slowdown in inventory investment. Export growth slowed, residential housing turned down, and business investment in equipment and software slowed. These contributions to the slowdown in GDP growth were partly offset by a strong pick up in consumer spending, especially for durable goods. Revisions An upward revision to imports and downward revisions to consumer spending and nonresidential investment were partly offset by upward revisions to exports and inventory investment. Quarter-to-Quarter Growth in Real GDP 8 6 Percent 4 2 0 -2 -4 -6 -8 II III IV 2006 I II III 2007 IV I II III 2008 IV I II III 2009 IV I 2010 Real GDP growth is measured at seasonally adjusted annual rates. Corporate profits First-quarter corporate profits rose 5.5 percent at a quarterly rate. Nonfinancial corporate profits rose 6.0 percent, and financial corporate profits rose 1.8 percent. Profits from the rest of the world grew 9.6 percent. Quarter-to-Quarter Growth in Corporate Profits 15 10 5 Percent 0 -5 -10 -15 -20 -25 II III 2006 IV I II 2007 III IV I II 2008 III IV I II III IV 2009 I 2010 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: The “third” estimate of GDP for the first quarter of 2010 will be released on June 25, 2010. Contact: Ralph Stewart or Thomas Dail (202) 606-2649 Bureau of Economic Analysis, U.S. Department of Commerce