Real gross domestic product (GDP) decreased 0.2 percent in the first quarter of 2015, according to the “third” estimate released by the Bureau of Economic Analysis. The growth rate was revised up 0.5 percentage point from the “second” estimate released in May. In the fourth quarter of 2014, real GDP increased 2.2 percent.
GDP highlights
The first-quarter decline in real GDP reflected declines in exports of goods, notably capital goods as well as autos and parts; in business investment, notably in mining exploration, shafts, and wells; and in state and local government spending.
Partly offsetting the contributions to the decline in GDP, consumer spending on services rose, notably on health care and on housing and utilities. Also, inventory investment and housing investment rose.
Revisions
The percent change in first-quarter real GDP was revised up, mainly reflecting up revisions to exports, consumer spending, inventory investment, business investment, and state and local government spending. Partly offsetting these revisions, imports was revised up.
For more information, see the technical note.
Personal income and personal saving
Real disposable personal income (DPI) – personal income adjusted for inflation and taxes – increased 5.3 percent in the first quarter, compared with 4.1 percent in the fourth quarter. Personal saving as a percentage of current-dollar DPI was 5.4 percent, compared with 4.7 percent in the fourth quarter.
Corporate profits
Corporate profits decreased 5.2 percent at a quarterly rate in the first quarter after decreasing 1.4 percent in the fourth quarter of 2014.
- Profits of domestic nonfinancial corporations fell 6.1 percent after rising 1.4 percent.
- Profits of domestic financial corporations fell 0.5 percent after falling 2.7 percent.
- Profits from the rest of the world fell 7.7 percent after falling 8.8 percent.
Over the last 4 quarters, corporate profits increased 4.5 percent.
For more information, read the full report.