First Quarter GDP Grew 2.3%

Real GDP grew at a seasonally adjusted annual rate of 2.3% during the first quarter of 2018, according to the Bureau of Economic Analysis’s “advance” estimate, down from 2.9% in the fourth quarter. The growth in real GDP reflected positive contributions from personal consumption expenditures, nonresidential fixed investment, exports, private inventory investments, state and local government spending, and federal government spending. However, each of the aforementioned categories decelerated, leading to slower GDP growth.

Consumption accounted for 0.7% of the gain, down from 2.7% during the fourth quarter. Fixed investments slowed, adding a total of 0.8% to GDP. After inventories subtracted 0.5% to GDP last quarter, they contributed 0.4% in the first quarter.

Government spending slowed during the quarter, adding 0.2% to growth. Federal and state and local government contributed 0.1% each to the GDP increase.

Read the BEA release.