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FRIDAY, June 25, 2010 GDP GROWTH MODERATES IN FIRST QUARTER “Third” Estimate of GDP Real gross domestic product (GDP) increased 2.7 percent in the first quarter of 2010 after increasing 5.6 percent in the fourth quarter, according to estimates released today by the Bureau of Economic Analysis. The first-quarter growth rate was revised down 0.3 percentage point from the second estimate released in May. GDP highlights The moderation in real GDP growth primarily reflected a sharp slowdown in inventory investment as well as slowdowns in exports and business investment in equipment and software. In addition, housing turned down. These contributions to the slowdown in real GDP growth were partly offset by a strong pick up in consumer spending, especially for durable goods. Revisions The downward revision to real GDP growth mainly reflected downward revisions to consumer spending and net exports. These revisions were partly offset by an upward revision to inventory investment. Quarter-to-Quarter Growth in Real GDP 8 6 Percent 4 2 0 -2 -4 -6 -8 II III IV 2006 I II III 2007 IV I II III 2008 IV I II III 2009 IV I 2010 Real GDP growth is measured at seasonally adjusted annual rates. Corporate Profits First-quarter corporate profits rose 8.0 percent at a quarterly rate. Nonfinancial corporate profits increased 10.7 percent, and financial corporate profits rose 2.7 percent. Profits from the rest of the world grew 8.5 percent. Quarter-to-Quarter Growth in Corporate Profits 15 10 5 Percent 0 -5 -10 -15 -20 -25 II III IV 2006 I II III 2007 IV I II III 2008 IV I II III 2009 IV I 2010 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 “advance” estimate of GDP for the second quarter of 2010 will be released on July 30, 2010, along with the annual revision of the GDP accounts. Contact: Ralph Stewart or Thomas Dail (202) 606-2649 Bureau of Economic Analysis, U.S. Department of Commerce
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