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FRIDAY, MAY 27, 2016 GDP INCREASES IN FIRST QUARTER “Second” estimate of GDP Real gross domestic product (GDP) increased 0.8 percent in the first quarter of 2016, according to the “second” estimate released today by the Bureau of Economic Analysis. The growth rate was 0.3 percentage point higher than the “advance” estimate released last month. 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 and on gas and other energy goods. 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 rose 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. Goods exports declined, notably in nonautomotive capital goods. Farm and nonfarm private inventory investment declined. Federal government spending declined, notably on national defense spending. Revisions The upward revision to real GDP growth was mainly accounted for by upward revisions to private inventory investment and to exports and a downward revision to imports. Corporate profits Corporate profits increased 0.3 percent at a quarterly rate in the first quarter of 2016 after decreasing 7.8 percent in the fourth quarter of 2015. Quarter-to-Quarter Growth in Corporate Profits 10 8 6 4 Profits of domestic nonfinancial corporations 2 Percent increased 4.0 percent after decreasing 10.2 percent. Profits of domestic financial corporations decreased 0.5 percent after decreasing 6.0 percent. Profits from the rest of the world decreased 9.9 percent after decreasing 1.7 percent. 0 -2 -4 -6 -8 -10 II Over the last 4 quarters, corporate profits decreased 5.7 percent. III 2012 IV I II III 2013 IV I II III 2014 IV I II III IV 2015 I 2016 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 2016 will be released on June 28, 2016. Contact: Jeannine Aversa (202) 606-2649 Bureau of Economic Analysis, U.S. Department of Commerce
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