Real gross domestic product increased at an annual rate of 1.3 percent in the first quarter of 2024, according to the “second” estimate. In the fourth quarter of 2023, real GDP increased 3.4 percent. The GDP estimate for the first quarter was revised down 0.3 percentage point from the “advance” estimate, primarily reflecting a downward revision to consumer spending.
The increase in the first quarter primarily reflected increases in consumer spending and housing investment that were partly offset by a decrease in inventory investment. Imports, which are a subtraction in the calculation of GDP, increased.
- The increase in consumer spending reflected an increase in services that was partly offset by a decrease in goods. Within services, the leading contributors to the increase were health care as well as financial services and insurance. Within goods, the leading contributors to the decrease were motor vehicles and parts as well as gasoline and other energy goods.
- The increase in housing investment was led by brokers’ commissions and other ownership transfer costs as well as new single-family housing construction.
- The decrease in inventory investment was led by decreases in wholesale trade and manufacturing.
Compared to the fourth quarter, the deceleration in real GDP in the first quarter primarily reflected decelerations in consumer spending, exports, and state and local government spending and a downturn in federal government spending. These movements were partly offset by an acceleration in housing investment. Imports accelerated.
Prices
Gross domestic purchases prices, the prices of goods and services purchased by U.S. residents, increased 3.0 percent in the first quarter after increasing 1.9 percent in the fourth quarter. Excluding food and energy, prices increased 3.2 percent after increasing 2.1 percent.
Personal consumption expenditures prices increased 3.3 percent in the first quarter after increasing 1.8 percent in the fourth quarter. Excluding food and energy, the PCE “core” price index increased 3.6 percent after increasing 2.0 percent.
Personal income and saving
Real disposable personal income (DPI)—personal income adjusted for taxes and inflation—increased 1.9 percent in the first quarter after increasing 0.9 percent (revised) in the fourth quarter.
Profits decreased 0.6 percent at a quarterly rate in the first quarter after increasing 4.1 percent in the fourth quarter.
- Profits of domestic financial corporations increased 16.1 percent after increasing 1.3 percent.
- Profits of domestic nonfinancial corporations decreased 4.7 percent after increasing 5.9 percent.
- Profits from the rest of the world (net) increased 3.8 percent after decreasing 1.7 percent.
Corporate profits increased 7.2 percent in the first quarter from one year ago.
Updates to GDP
The update from the “advance” estimate primarily reflected downward revisions to consumer spending, inventory investment, and federal government spending that were partly offset by upward revisions to state and local government spending, business investment, housing investment, and exports. Imports were revised up.
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