GDP Increases in First Quarter

Real gross domestic product (GDP) increased 1.2 percent in the first quarter of 2017, according to the “second” estimate released by the Bureau of Economic Analysis. The growth rate was 0.5 percentage points higher than the “advance” estimate released in April. In the fourth quarter of 2016, real GDP rose 2.1 percent.

First quarter GDP highlights Q2Q May 26
The increase in real GDP was accounted for by increases in business investment, housing investment, consumer spending on services, and exports. These increases were partly offset by decreases in inventory investment, and government spending. Imports, which are a subtraction from GDP, increased.

Revisions
The upward revision to the second estimate of GDP growth reflected upward revisions in business investment, consumer spending in services, and state and local government spending. These upward revisions were partly offset by a downward revision to inventory investment. For more information, see the technical note.

Corporate Profits
Corporate profits decreased 1.9 percent at a quarterly rate in the first quarter of 2017 after increasing 0.5 percent in the fourth quarter of 2016.Corporate Profits May 26

  • Profits of domestic nonfinancial corporations decreased 1.4 percent after
    decreasing 4.9 percent.
  • Profits of domestic financial corporations decreased 5.5 percent after increasing 5.4 percent.
  • Profits from the rest of the world increased 1.4 percent after increasing 11.0 percent.

Over the last 4 quarters, corporate profits increased 3.7 percent.

For more information, read the full report.


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