June 25, 2020

Real gross domestic product (GDP) decreased 5.0 percent in the first quarter of 2020, according to the “third” estimate released by the Bureau of Economic Analysis. The decline is the same as in the “second” estimate released in May. In the fourth quarter of 2019, real GDP increased 2.1 percent. For more information, see the Technical Note.

First-quarter GDP highlights
The first-quarter decrease in real GDP reflected decreases in consumer spending, inventory investment, exports, and business investment that were partially offset by increases in housing investment and government spending. Imports, a subtraction in the calculation of GDP, decreased.

Q2Q GDP June25

The decrease in consumer spending reflected a decrease in services (led by health care). The decrease in inventory investment primarily reflected a decrease in manufacturing (led by petroleum and coal products). The decrease in exports primarily reflected a decrease in services (led by travel). The decrease in business investment primarily reflected a decrease in equipment (led by transportation equipment).

The increase in housing investment primarily reflected an increase in new single-family housing, while the increase in government spending primarily reflected an increase in federal government spending.

Updates to GDP
While the overall change in GDP was unrevised from the second estimate, an upward revision to business investment was offset by downward revisions to inventory investment, consumer spending, and exports.

Corporate profits from current production
Profits decreased 12.3 percent at a quarterly rate in the first quarter after increasing 2.6 percent in the fourth quarter. Corporate profits decreased 6.9 percent in the first quarter from one year ago.

Q2Q Corporate Profits June25
  • Profits of domestic nonfinancial corporations decreased 15.4 percent after increasing 4.8 percent.
  • Profits of domestic financial corporations decreased 9.2 percent after increasing 0.2 percent.
  • Profits from the rest of the world decreased 8.0 percent after decreasing 0.3 percent.

For more information, read the full report.