Gross Domestic Product rises in Q1 2010
Real GDP increased at an annual rate of 3.2 percent in the first quarter of 2010.
Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 3.2 percent in the first quarter of 2010, (that is, from the fourth quarter to the first quarter), according to the "advance" estimate released by the Bureau of Economic Analysis.
In the fourth quarter, real GDP increased 5.6 percent. The Bureau emphasized that the first-quarter advance estimate released today is based on source data that are incomplete or subject to further revision by the source agency. The "second" estimate for the first quarter, based on more complete data, will be released on May 27, 2010.
The increase in real GDP in the first quarter primarily reflected positive contributions from
personal consumption expenditures (PCE), private inventory investment, exports, and nonresidential fixed investment that were partly offset by decreases in state and local government spending and in residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
The deceleration in real GDP in the first quarter primarily reflected decelerations in private
inventory investment and in exports, a downturn in residential fixed investment, and a larger decrease in state and local government spending that were partly offset by an acceleration in PCE and a deceleration in imports.
Motor vehicle output added 0.52 percentage point to the first-quarter change in real GDP after adding 0.45 percentage point to the fourth-quarter change. Final sales of computers added 0.19 percentage point to the first-quarter change in real GDP after adding 0.01 percentage point to the fourthquarter change.
The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 1.7 percent in the first quarter, compared with an increase of 2.0 percent in the fourth.
Excluding food and energy prices, the price index for gross domestic purchases increased 1.1 percent in the first quarter, compared with an increase of 1.5 percent in the fourth. The federal pay raise for civilian and military personnel added 0.2 percentage point to the change in the first-quarter gross domestic purchases price index.
- Real personal consumption expenditures increased 3.6 percent in the first quarter, compared with an increase of 1.6 percent in the fourth.
- Durable goods increased 11.3 percent, compared with an increase of 0.4 percent.
- Nondurable goods increased 3.9 percent, compared with an increase of 4.0 percent.
- Services increased 2.4 percent, compared with an increase of 1.0 percent.
- Real nonresidential fixed investment increased 4.1 percent in the first quarter, compared with an increase of 5.3 percent in the fourth.
- Nonresidential structures decreased 14.0 percent, compared with a decrease of 18.0 percent.
- Equipment and software increased 13.4 percent, compared with an increase of 19.0 percent.
- Real residential fixed investment decreased 10.9 percent, in contrast to an increase of 3.8
percent. - Real exports of goods and services increased 5.8 percent in the first quarter, compared with an increase of 22.8 percent in the fourth.
- Real imports of goods and services increased 8.9 percent, compared with an increase of 15.8 percent.
- Real federal government consumption expenditures and gross investment increased 1.4 percent in the first quarter, compared with no change in the fourth.
- National defense increased 1.2 percent, in contrast to a decrease of 3.6 percent.
- Nondefense increased 1.7 percent, compared with an increase of 8.3 percent.
- Real state and local government consumption expenditures and gross investment decreased 3.8 percent, compared with a decrease of 2.2 percent.
The change in real private inventories added 1.57 percentage points to the first-quarter change in real GDP after adding 3.79 percentage points to the fourth-quarter change.
Private businesses increased inventories $31.1 billion in the first quarter, following decreases of $19.7 billion in the fourth quarter and $139.2 billion in the third.
Real final sales of domestic product -- GDP less change in private inventories -- increased 1.6 percent in the first quarter, compared with an increase of 1.7 percent in the fourth.
Gross domestic purchases
Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 3.8 percent in the first quarter, compared with an increase of 5.2 percent in the fourth.
Disposition of personal income
Current-dollar personal income increased $115.1 billion (3.9 percent) in the first quarter,
compared with an increase of $92.5 billion (3.1 percent) in the fourth.
Personal current taxes increased $73.3 billion in the first quarter, in contrast to a decrease of $1.9 billion in the fourth.
Disposable personal income increased $41.7 billion (1.5 percent) in the first quarter, compared with an increase of $94.4 billion (3.5 percent) in the fourth. Real disposable personal income was unchanged in the first quarter, compared with an increase of 1.0 percent.
Personal outlays increased $130.4 billion (5.0 percent) in the first quarter, compared with an increase of $96.5 billion (3.7 percent) in the fourth. Personal saving -- disposable personal income less personal outlays -- was $340.8 billion in the first quarter, compared with $429.3 billion in the fourth.
The personal saving rate -- saving as a percentage of disposable personal income -- was 3.1 percent in the first quarter, compared with 3.9 percent in the fourth. For a comparison of personal saving in BEA’s national income and product accounts with personal saving in the Federal Reserve Board’s flow of funds accounts and data on changes in net worth, go to http://www.bea.gov/national/nipaweb/Nipa-Frb.asp.
Current-dollar GDP
Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 4.1 percent, or $147.6 billion, in the first quarter to a level of $14,601.4 billion. In the fourth quarter, current-dollar GDP increased 6.1 percent, or $211.7 billion.
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