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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.