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Tuesday, June 28, 2016
Contact: Jeannine Aversa, 301.278.9003

GDP INCREASES IN FIRST QUARTER
“Third” estimate of GDP
Real gross domestic product (GDP) increased 1.1 percent in the first quarter of 2016, according to the “third”
estimate released by the Bureau of Economic Analysis. The growth rate was 0.3 percentage point higher than the
“second” estimate released last month. In the fourth quarter of 2015, real GDP increased 1.4 percent.

In addition, housing investment, state and local
government expenditures, and exports each
increased.

Quarter‐to‐Quarter Growth in Real GDP

6

4
Percent

GDP highlights
The first‐quarter increase in real GDP mainly
reflected an increase in consumer spending on
services. Spending on household services
increased, notably on health care and on
housing and utilities. Consumer spending on
nondurable goods also increased. However,
consumer spending on durable goods declined,
notably on motor vehicles and parts.

2

0

‐2
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2012

2013

2014

2015

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 in equipment and in structures decreased.
 Farm and nonfarm private inventory investment declined.
 Federal government spending declined, notably on national defense spending.

Revisions
The upward revision to real GDP growth reflected upward revisions to exports and to business investment, which
were partly offset by a downward revision to consumer spending. More information.

Quarter‐to‐Quarter Growth in Corporate Profits
10
8
6
4

Percent

Corporate profits
Corporate profits increased 1.8 percent at a
quarterly rate in the first quarter of 2016 after
decreasing 7.8 percent in the fourth quarter of
2015.

 Profits of domestic nonfinancial corporations
increased 6.4 percent after decreasing 10.2
percent.
 Profits of domestic financial corporations
decreased 3.0 percent after decreasing 6.0
percent.
 Profits from the rest of the world decreased
7.2 percent after decreasing 1.7 percent.

2
0
‐2
‐4
‐6
‐8
‐10
Q2

Q3

2012

Q4

Q1

Q2

Q3

2013

Q4

Q1

Q2

Q3

Q4

Q1

Q2

2014

Q3

2015

Q4

Q1

2016

Corporate profits growth is measured as the percent change from the previous quarter.

Over the last 4 quarters, corporate profits decreased 4.3 percent.

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 at www.bea.gov. E-mail alerts are also available. The
“advance” estimate of GDP for the second quarter of 2016 will be released on July 29, 2016.