US Real GDP Increases at an Annual Rate of 1.3% in Q1, BEA Reports in Its “Second” Estimate

On Thursday, the Bureau of Economic Analysis (BEA) released its “second” estimate for Q1 real gross domestic product (GDP). According to the report, real GDP increased at an annual rate of 1.3%. This follows an increase of 3.4% in 2023Q4.

The “second” GDP estimate is based on more complete source data than were available for the “advance” estimate issued last month. In the “advance” estimate, the increase was 1.6%. The update primarily reflected 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. Imports, which are a subtraction in the calculation of GDP, increased.

Compared to 2023Q4, the deceleration in real GDP in Q1 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. Imports increased.