BEA Reports Real GDP in Q1 2023 Increases at an Annual Rate of 2.0% in its Third Estimate

The Bureau of Economic Analysis (BEA) released today (6-29-23), its third estimate for Q1 of 2023, real gross domestic product (GDP). According to the report GDP increased at an annual rate of 2.0%. This follows a reported real GDP increase of 2.6% in Q4 of 2022.

The “third” GDP estimate released today is based on more complete source data than were available for the “second” estimate issued last month. In the “second” estimate, the increase in real GDP was 1.3%. The updated estimates primarily reflected upward revisions to export and consumer spending that were partially offset by downward revisions to nonresidential fixed investment and federal government spending. Imports, which are a subtraction in the calculation of GDP, were revised lower.

Compared to Q4 2022, the deceleration in real GDP in Q1 2023 primarily reflected a downturn in private inventory investment and a slowdown in in nonresidential fixed investment that were partially offset by an acceleration in consumer spending, an upturn in exports and a smaller decrease in residential fixed investment. Imports moved higher.

The BEA will release its GDP for Q2 2023 – “Advance” estimate on Thursday July 27, 2023.