Nondurable Goods Manufacturing Led Decline in 1Q - Modern Distribution Management

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Nondurable Goods Manufacturing Led Decline in 1Q

Professional, scientific and technical services and wholesale trade also contributed to the decrease.

Real gross domestic product for the U.S. decreased at an annual rate of 0.2 percent in the first quarter of 2015, according to the Bureau of Economic Analysis. A deceleration in nondurable goods manufacturing (+0.2 percent) and downturns in both professional, scientific and technical services (-0.6 percent) and wholesale trade (-3.4 percent) were the leading contributors to the downturn in U.S. economic growth. Overall, 15 of 22 industry groups contributed to the downturn in the first quarter.

Also contributing to the decline, transportation and warehousing services decreased 17.3 percent, while utilities decreased 18.4 percent. Conversely, retail trade contributed the largest positive offset to the decrease in real GDP in the first quarter, increasing 8.7 percent.

Real gross output decelerated in the first quarter, reflecting a downturn in real gross output for the private services-producing sector that was partly offset by an acceleration in the private goods-producing sector and an upturn in the government sector.

Wholesale trade real gross output decreased 10.9 percent, while transportation and warehousing services decreased 7.8 percent and professional, scientific and technical services decreased 4.1 percent.

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