Trade Deficit Decreases First Quarter GDP
Real gross domestic product (GDP), decreased at an annual rate of 0.2 percent in the first quarter of 2015, in contrast to an increase of 2.2 percent in the fourth quarter of 2014, according to the third estimate released by the Bureau of Economic Analysis.
This GDP estimate released is based on more complete source data than were available for the second estimate issued last month. In the second estimate, the decrease in real GDP was 0.7 percent. With the third estimate for the first quarter, exports decreased less than previously estimated, and personal consumption expenditure (PCE) and imports increased more.
The decrease in the real GDP in the first quarter primarily reflects negative contributions from exports, nonresidential fixed investment and state and local government spending that were partly offset by positive contributions from PCE, private inventory investment and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
Real exports of goods and services decreased 5.9 percent in the first quarter, in contrast to an increase of 4.5 percent in the fourth. Real imports of goods and services increased 7.1 percent, compared with an increase of 10.4 percent.
Real final sales of domestic product decreased 0.6 percent in the first quarter, in contrast to an increase of 2.3 percent in the fourth.
The annual revision of the national income and product accounts will be released along with an advance estimate of GDP for the second quarter of 2015 on July 30.