U.S. Real GDP in Q1 2024 Increases at an Annual Rate of 1.4% in BEA’s “Third” & Final Estimate

The Bureau of Economic Analysis (BEA) released on Thursday (6-27-24), its “Third” and Final estimate for Q1 of 2024, real gross domestic product (GDP). According to the report GDP increased at an annual rate of 1.4% in Q1 of 2024. This follows a reported real GDP increase of 3.4% in Q4 of 2023.

This represents a slight increase relative to last month’s estimate of 1.3%. The upward revision primarily reflected a downward revision to imports, which are a subtraction in the calculation of GDP, and upward revisions to nonresidential fixed investment and government spending. These revisions were partly offset by a downward revision to consumer spending.

The increase in real GDP primarily reflected increases in consumer spending, residential fixed investment, nonresidential fixed investment, and state and local government spending that were partly offset by a decrease in private inventory investment.

Compared to the fourth quarter, the deceleration in real GDP primarily reflected decelerations in 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.