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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