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THURSDAY, APRIL 28, 2016

GDP INCREASES IN FIRST QUARTER
“Advance” estimate of GDP
Real gross domestic product (GDP) increased 0.5 percent in the first quarter of 2016, according to the “advance”
estimate released today by the Bureau of Economic Analysis. In the fourth quarter of 2015, real GDP increased 1.4
percent.

Consumer spending on nondurable goods also
increased, notably on food and beverage grocery
items. However, consumer spending on durable
goods declined, notably on motor vehicles and
parts.

Quarter-to-Quarter Growth in Real GDP
6

4
Percent

GDP highlights
The first-quarter increase in real GDP was more
than accounted for by an increase in consumer
spending on services. Spending on household
services increased, notably on housing and utilities and on health care.

2

0

-2
II III
2012

Residential investment and state and local government spending also increased in the first quarter.

IV

I

II III
2013

IV

I

II III
2014

IV

I

II III
2015

IV

I
2016

Real GDP growth is measured at seasonally adjusted annual rates.

These positive contributions to GDP growth were partially offset by the following:
 Business investment decreased, mainly in equipment and in structures.
 Private inventory investment declined, notably in manufacturing and in wholesale trade industries.
 Goods exports declined, notably in nonautomotive capital goods.
 Federal government spending also declined, notably on national defense spending.
Quarter-to-Quarter Percent Change in Gross
Domestic Purchases Prices

First-quarter prices
Prices of goods and services purchased by U.S.
residents increased 0.3 percent in the first quarter
of 2016, after increasing 0.4 percent in the fourth
quarter of 2015.

Excluding food and energy, prices increased 1.4
percent in the first quarter of 2016, compared
with an increase of 1.0 percent in the fourth quarter of 2015.

2
Percent

Both energy prices and food prices declined
more in the first quarter of 2016 than in the
fourth quarter of 2015.

3

1

0

-1

-2
II

III

2012

IV

I

II

III

2013

IV

I

II

III

2014

IV

I

II

III

2015

IV

I

2016

Price growth measured at seasonally adjusted annual rates.

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 “second” estimate of GDP and a preliminary estimate of corporate profits for the first quarter of 2016 will be released on May
27, 2016.
Contact: Jeannine Aversa (202) 606-2649

Bureau of Economic Analysis, U.S. Department of Commerce