Real GDP grew at an annual rate of 1.3% in the first quarter of 2024, according to the “second” estimate released by the Bureau of Economic Analysis. Real GDP increased 3.4% in the fourth quarter of 2023.
The increase in real GDP primarily reflected increases in consumer spending, residential fixed investment, nonresidential fixed investment, and state and local government spending that were partly offset by a decrease in private inventory investment. Imports, which are a subtraction in the calculation of GDP, increased.
Consumption added 1.34 percentage points (pp) to growth, following a 2.20 pp addition in the fourth quarter of 2023. The increase in PCE was driven by services (1.76 pp) such as those in the household consumption expenditure: healthcare (0.70 pp), financial services and insurance (0.30 pp), and other services (0.26 pp) added to growth. Food services and accommodations subtracted 0.17 pp from real growth. Good subtracted 0.42 pp from real GDP which included motor vehicle and parts (-0.38 pp), and gasoline and other energy goods (-0.16 pp). Other durable goods and clothing and footwear added 0.11 pp and 0.07 pp to real GDP, respectively.
Business investment added 1.02 pp to real GDP. Nonresidential fixed investment added 0.44 pp, with structures and equipment each adding 0.01 pp, and intellectual property products adding 0.42pp. Residential fixed investment added 0.57 pp. Transportation equipment, a part of equipment, subtracted 0.26 pp, while software, a part of intellectual property products, added 0.22 pp.
Government spending added 0.23 pp to real GDP. Federal government subtracted 0.05 pp while state and local government added 0.28 pp.
Exports added 0.13 pp to GDP while imports subtracted 1.02 pp.
Read the BEA release.
