First Quarter U.S. GDP Up 3.1% According to Third Estimate

Real gross domestic income increased 1% in the first quarter.

Real gross domestic product increased at an annual rate of 3.1% in the first quarter of 2019, according to the "third" estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2018, real GDP increased 2.2%.

Real gross domestic income increased 1% in the first quarter, compared with an increase of 0.5% in the fourth quarter. The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 2.1% in the first quarter, compared with an increase of 1.3% in the fourth quarter.

The increase in real GDP in the first quarter reflected positive contributions from exports, PCE, nonresidential fixed investment, private inventory investment, and state and local government spending that were slightly offset by a negative contribution from residential fixed investment. Imports, which are a subtraction in the calculation of GDP, decreased.

The acceleration in real GDP in the first quarter reflected an upturn in state and local government spending and accelerations in private inventory investment and in exports. These movements were partly offset by a deceleration in PCE. Imports decreased in the first quarter after increasing in the fourth.

Current–dollar GDP increased 3.8%, or $195 billion, in the first quarter to a level of $21.06 trillion. In the fourth quarter, current-dollar GDP increased 4.1%, or $206.9 billion.

The price index for gross domestic purchases increased 0.8% in the first quarter, compared with an increase of 1.7% in the fourth quarter. The PCE price index increased 0.5%, compared with an increase of 1.5%. Excluding food and energy prices, the PCE price index increased 1.2%, compared with an increase of 1.8%.

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