US GDP rises in first-quarter

1.8 per cent upturn.

New Statesman
Photograph: Getty Images.

The US real gross domestic product (GDP), which measures the output of goods and services produced by labour and property located in the country, grew at an annual rate of 1.8 per cent in the first quarter of this year, according to the third estimate released by the Bureau of Economic Analysis (BEA).

The rise in real GDP in the first-quarter was primarily due to an upturn in personal consumption expenditure, private inventory investment, and residential fixed investment, which were partly offset by negative contributions from federal government spending, state and local government spending, and exports.

In addition, imports, which are deductions in the calculation of GDP, declined.

Real GDP grew by 0.4 per cent in the fourth quarter of 2012.

Last month, in its second estimate, the BEA projected real GDP to increase by 2.4 per cent.

During the first-quarter, real exports of goods and services declined by 1.1 per cent, while real federal government consumption expenditures and gross investment decreased 8.7 per cent compared to previous quarter.

Motor vehicle output and the change in real private inventories added 0.33 and 0.57 percentage points respectively to the real GDP in the first-quarter.

Real federal government consumption expenditures and gross investment fell 8.7 per cent in the first-quarter, compared to a decline of 14.8 per cent in the fourth quarter.

Current-dollar GDP, which indicates the market value of the country’s output of goods and services, grew by 3.1 per cent in the first-quarter, compared to a growth of 1.3 per cent in the fourth-quarter.