Real GDP for the first quarter of 2016 grew at an annual rate of 0.8 percent, according to the Bureau of Economic Analysis’s second estimate. First quarter GDP was revised up from the advance estimate of 0.5 percent growth, as the decrease in private inventory investment was smaller than previously estimated. During the fourth quarter of 2015, real GDP grew at a rate of 1.4 percent.
Consumption was the largest contributor to GDP accounting for 1.3 percent of growth, compared to 1.7 percent during the fourth quarter. Consumption spending grew by $53.5 billion during the first quarter of 2016, compared to $68.3 billion during the fourth quarter of 2015.
Non-residential fixed investment was a significant drag on GDP, subtracting 0.8 percent from growth. The fall in non-residential fixed investment was partially offset by a $22.0 billion increase in residential fixed investment, which contributed 0.6 percent to GDP.
Inventories subtracted 0.2 percent from GDP, a lower figure than the 0.3 percent subtraction estimated previously. Both farm and nonfarm private inventories declined during the quarter. The negative impact of net exports was also revised during the quarter, falling from a 0.3 percent drag to a 0.2 percent drag.
State and local government spending grew, contributing 0.3 percent to GDP. This was offset by a decrease in Federal government spending, which was a 0.1 percent drag.
Read the BEA release.