Real GDP Increases at an Annual Rate of 1.6% in Q1, BEA Reports in Its “Advance” Estimate

On Thursday, the Bureau of Economic Analysis (BEA) released its “advance” estimate for Q1 real gross domestic product (GDP). GDP increased at an annual rate of 1.6% in Q1, following a reported real GDP increase of 3.4% in 2023Q4.

The “advance” GDP estimate is based on source data that are incomplete or subject to further revision. On May 30th, the “second” estimate for Q1 will be based on more complete data.

The increase in real GDP primarily reflected increases in consumer spending, residential fixed investment, nonresidential fixed investment, and state and local government spending. Those gains were partly offset by a decrease in private inventory investment. Imports, which are a subtraction in the calculation of GDP, increased.

Compared to 2023Q4, the deceleration in real GDP in Q1 primarily reflected slower consumer spending, exports, and state and local government spending and a downturn in federal government spending. These movements were partly offset by an acceleration in residential fixed investment. Imports increased.