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Thursday, June 27, 2019 Contact: Jeannine Aversa, (301) 278-9003 GDP INCREASES IN FIRST QUARTER “Third” estimate of GDP Real gross domestic product (GDP) increased 3.1 percent in the first quarter of 2019, according to the “third” estimate released by the Bureau of Economic Analysis. The growth rate was unrevised from the “second” estimate released in May. In the fourth quarter of 2018, real GDP rose 2.2 percent. GDP highlights The increase in real GDP reflected increases in exports, consumer spending, business investment, inventory investment, and state and local government spending. Imports, which are a subtraction in the calculation of GDP, decreased. The increase in exports reflected increases in both goods (led by automotive vehicles, engines, and parts) and services. The increase in consumer spending reflected increases in both goods (largely prescription drugs) and services (notably health care). Intellectual property products led the increase in business investment. Nondurable goods manufacturing industries led the increase in inventory investment. Updates to GDP The unrevised GDP growth rate reflected upward revisions to business investment, exports, and state and local government spending. These were offset by downward revisions to consumer spending and inventory investment and an upward revision to imports. Corporate Profits (current production) Corporate profits decreased 2.6 percent at a quarterly rate in the first quarter of 2019 after decreasing 0.4 percent in the fourth quarter of 2018. 6 • • Profits of domestic nonfinancial corporations decreased 4.9 percent after increasing 1.0 percent. Profits of domestic financial corporations increased 0.3 percent after decreasing 5.6 percent. Profits from the rest of the world increased 1.5 percent after increasing 0.4 percent. Corporate profits increased 3.4 percent in the first quarter from one year ago. 4 2 Percent • Quarter-to-Quarter Growth in Corporate Profits 0 -2 -4 -6 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 2018 2019 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 regional economic data—are available at www.bea.gov. E-mail alerts are also available. The “advance” estimate of GDP for the second quarter of 2019 will be released on July 26, 2019.
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