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 1.0 percent in the first quarter of 2008 (that is, from the fourth quarter to the first quarter), according to final estimates released June 26 by the U.S. Bureau of Economic Analysis. In the fourth quarter, real GDP increased 0.6 percent.
The GDP estimates released June 26 are based on more complete source data than were available for the preliminary estimates issued last month. In the preliminary estimates, the increase in real GDP was 0.9 percent.
The increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures (PCE) for services, exports of goods and services, and federal government spending that were partly offset by negative contributions from residential fixed investment and PCE for durable goods.
The small acceleration in real GDP primarily reflected an upturn in inventory investment that was partly offset by a deceleration in PCE.
Final sales of computers contributed 0.09 percentage point to the first-quarter growth in real GDP after contributing 0.16 percentage point to the fourth-quarter growth. Motor vehicle output subtracted 0.48 percentage point from the first-quarter growth in real GDP after subtracting 0.86 percentage point from the fourth-quarter growth.
The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 3.6 percent in the first quarter, 0.1 percentage point more than the preliminary estimate; this index increased 3.7 percent in the fourth quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 2.3 percent in the first quarter, the same as in the fourth. About 0.3 percentage point of the first-quarter increase in the index was accounted for by the pay raise for federal civilian and military personnel, which is treated as an increase in the prices of employee services purchased by the federal government.
Real personal consumption expenditures increased 1.1 percent in the first quarter, compared with an increase of 2.3 percent in the fourth. Real non-residential fixed investment increased 0.6 percent, compared with an increase of 6.0 percent. Non-residential structures increased 1.2 percent, compared with an increase of 12.4 percent. Equipment and software increased 0.2 percent, compared with an increase of 3.1 percent. Real residential fixed investment decreased 24.6 percent, compared with a decrease of 25.2 percent.
Real exports of goods and services increased 5.4 percent in the first quarter, compared with an increase of 6.5 percent in the fourth. Real imports of goods and services decreased 0.7 percent, compared with a decrease of 1.4 percent.
Real federal government consumption expenditures and gross investment increased 4.3 percent in the first quarter, compared with an increase of 0.5 percent in the fourth. National defense increased 5.6 percent, in contrast to a decrease of 0.5 percent. Non-defense increased 1.7 percent, compared with an increase of 2.8 percent. Real state and local government consumption expenditures and gross investment increased 0.8 percent, compared with an increase of 2.8 percent.
The real change in private inventories added 0.02 percentage point to the first-quarter change in real GDP, after subtracting 1.79 percentage points from the fourth-quarter change. Private businesses decreased inventories $19.6 billion in the first quarter, following a decrease of $18.3 billion in the fourth quarter and an increase of $30.6 billion in the third.
Real final sales of domestic product – GDP less change in private inventories – increased 0.9 percent in the first quarter, compared with an increase of 2.4 percent in the fourth.
Gross domestic purchases
Real gross domestic purchases – purchases by U.S. residents of goods and services wherever produced – increased 0.2 percent in the first quarter, in contrast to a decrease of 0.4 percent in the fourth.
Gross national product
Real gross national product – the goods and services produced by the labor and property supplied by U.S. residents – increased 0.2 percent in the first quarter, compared with an increase of 1.9 percent in the fourth. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which decreased $22.7 billion in the first quarter after increasing $37.6 billion in the fourth; in the first quarter, receipts decreased $58.5 billion, and payments decreased $35.8 billion.
Current-dollar GDP
Current-dollar GDP – the market value of the nation's output of goods and services – increased 3.7 percent, or $126.9 billion, in the first quarter to a level of $14,201.1 billion. In the fourth quarter, current-dollar GDP increased 3.0 percent, or $103.7 billion.
