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WEDNESDAY, June 25, 2014 GDP DECREASES IN FIRST QUARTER Third estimate shows larger decline Real gross domestic product (GDP) decreased 2.9 percent in the first quarter of 2014, according to the “third” estimate released today by the Bureau of Economic Analysis. In the fourth quarter of 2013, real GDP increased 2.6 percent. First-quarter highlights The decline in real GDP was largely accounted for by significant declines in nonfarm inventory investment and in net exports. 4 2 Percent In addition, state and local government spending, business investment, and housing investment also contributed to the real GDP decline. Quarter-to-Quarter Growth in Real GDP 6 0 In contrast, consumer spending increased, notably in services (mainly home utilities). -2 -4 Revisions The first-quarter real GDP growth rate was revised down 1.9 percentage points from the second estimate released in May, based on newly available source data. II III 2010 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. Consumer spending was revised down, primarily reflecting a downward revision to services, mainly to health care. Exports of goods were revised down, reflecting revisions to industrial supplies and materials and to foods, feeds, and beverages. Exports of services were also revised down. Imports of goods were revised up, mainly non-auto capital goods as well as vehicles, engines, and parts. Im- ports of services were also revised up, mainly travel services. Profits of nonfinancial corporations fell 8.0 percent after rising 1.5 percent. Quarter-to-Quarter Growth in Corporate Profits 15 10 5 Percent Corporate profits BEA’s featured measure of corporate profits declined 9.1 percent at a quarterly rate in the first quarter, after increasing 2.2 percent in the previous quarter, according to updated estimates. The decline was the largest since the fourth quarter of 2008. 0 -5 Profits of financial corporations fell 15.1 per- cent after rising 1.3 percent. Profits from the rest of the world fell 5.8 percent after rising 5.5 percent. Over the last 4 quarters, corporate profits fell 2.2 percent. -10 -15 II 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 “advance” estimate of GDP for the second quarter of 2014 and the annual revision of the national income and product accounts will be released on July 30, 2014. Contact: Jeannine Aversa (202) 606-2649 Bureau of Economic Analysis, U.S. Department of Commerce
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