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THURSDAY, May 29, 2014 GDP DECLINES IN FIRST QUARTER Second estimate of GDP revises growth down Real gross domestic product (GDP) decreased 1.0 percent in the first quarter of 2014, according to the “second” estimate released today by the Bureau of Economic Analysis. In the fourth quarter of 2013, real GDP increased 2.6 percent. Quarter-to-Quarter Growth in Real GDP 6 4 Percent First-quarter GDP highlights The decline in real GDP was more than accounted for by a significant decline in inventory investment, notably by motor vehicle dealerships. In fact, GDP less inventory investment (real final sales of domestic product) rose 0.6 percent in the first quarter. 2 Declines in exports, in business investment, in state and local government spending, and in housing investment also contributed to the decrease in first-quarter real GDP. 0 -2 II III 2010 In contrast, consumer spending increased, notably in health care and in home utilities. IV I II III 2011 IV I II III 2012 IV I II III 2013 IV I 2014 Real GDP growth is measured at seasonally adjusted annual rates. Revisions First-quarter real GDP growth was revised down 1.1 percentage points from the advance estimate released in April, based on newly available source data. Inventory investment was revised down, mainly in retail trade, in manufacturing, and in mining, utilities, and construction. Imports were revised up, notably in foods, feeds, and beverages and in petroleum and related products. Partly offsetting this revision, exports were also revised up, notably in nonautomotive capital goods and in automotive vehicles, engines, and parts. Profits of nonfinancial corporations fell 8.1 percent after rising 1.5 percent. Profits of financial corporations fell 15.0 per- cent after rising 1.3 percent. Profits from the rest of the world fell 9.1 percent after rising 5.5 percent. Quarter-to-Quarter Growth in Corporate Profits 15 10 5 Percent Corporate profits BEA’s featured measure of corporate profits declined 9.8 percent in the first quarter, after increasing 2.2 percent in the previous quarter. The decline was the largest since the fourth quarter of 2008. 0 -5 -10 -15 II Over the last 4 quarters, corporate profits fell 3.0 percent. III 2010 IV I II III 2011 IV I II III 2012 IV I II III 2013 IV I 2014 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 and a revised estimate of corporate profits for the first quarter of 2014 will be released on June 25, 2014. Contact: Jeannine Aversa (202) 606-2649 Bureau of Economic Analysis, U.S. Department of Commerce
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