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WEDNESDAY, June 26, 2013 GDP GROWTH PICKS UP IN FIRST QUARTER Third Estimate of GDP Real gross domestic product (GDP) increased 1.8 percent in the first quarter of 2013 after increasing 0.4 percent in the fourth quarter of 2012, according to the third estimate released by the Bureau of Economic Analysis. The firstquarter growth rate was revised down 0.6 percentage point from the second estimate released in May. GDP highlights Inventory investment turned up notably, more than accounting for the acceleration in firstquarter GDP; the manufacturing and farm industries were the leading contributors to the upturn. In contrast, business investment slowed, as investment in structures turned down and investment in equipment and software slowed. Imports declined less than in the fourth quarter. 4 Percent Also, federal defense spending declined less in the first quarter than in the fourth quarter, and consumer spending on services, mainly for household utilities, picked up. Quarter-to-Quarter Growth in Real GDP 6 2 0 -2 II III IV 2009 I II III 2010 IV I II III 2011 IV I II III 2012 IV I 2013 Real GDP growth is measured at seasonally adjusted annual rates. Revisions to GDP The 0.6 percentage point downward revision to GDP growth for the first quarter primarily reflected a downward revision to consumer spending on services. Exports and business investment were also revised down. These revisions were partly offset by a downward revision to imports. For more information, see the technical note. Disposable income and personal saving rate Real disposable personal income—personal income adjusted for taxes and inflation—fell 8.6 percent in the first quarter, in contrast to an 8.9 percent rise in the fourth quarter; dividend income and wages and salaries turned down significantly in the first quarter (reflecting accelerated payments in the fourth quarter). Personal saving as a percent of disposable personal income was 2.5 percent, compared with 5.3 percent in the fourth quarter. Profits of nonfinancial corporations fell 0.5 percent at a quarterly rate in the first quarter, and profits of financial corporations fell 0.8 percent. Profits from the rest of the world fell 4.3 percent. Quarter-to-Quarter Growth in Corporate Profits 20 15 10 Percent Corporate profits Corporate profits fell 1.4 percent at a quarterly rate in the first quarter after rising 2.3 percent in the fourth quarter of 2012. (In the preliminary first-quarter estimate, profits fell 2.2 percent.) 5 0 -5 -10 II III 2009 IV I II III 2010 IV I II III 2011 IV I II III 2012 IV I 2013 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 advance estimate of GDP for the second quarter and the 2013 comprehensive revision of the national income and product accounts will be released on July 31, 2013. Contact: Jeannine Aversa (202) 606-2649 Bureau of Economic Analysis, U.S. Department of Commerce
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