Embed Doc
Copy Link
Readcast
Collections

CommentGo Back

Download

NEWS RELEASE



EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, WEDNESDAY, APRIL 29, 2009Lisa Mataloni: (202) 606-5304 BEA 09-17Recorded message: (202) 606-5306

GROSS DOMESTIC PRODUCT: FIRST QUARTER 2009 (ADVANCE)

Real gross domestic product -- the output of goods and services produced by labor and propertylocated in the United States -- decreased at an annual rate of 6.1 percent in the first quarter of 2009, (thatis, from the fourth quarter to the first quarter), according to advance estimates released by the Bureau of Economic Analysis. In the fourth quarter, real GDP decreased 6.3 percent.The Bureau emphasized that the first-quarter “advance” estimates are based on source data thatare incomplete or subject to further revision by the source agency (see the box on page 4). The first-quarter “preliminary” estimates, based on more comprehensive data, will be released on May 29, 2009.The decrease in real GDP in the first quarter primarily reflected negative contributions fromexports, private inventory investment, equipment and software, nonresidential structures, and residentialfixed investment that were partly offset by a positive contribution from personal consumptionexpenditures (PCE). Imports, which are a subtraction in the calculation of GDP, decreased.The slightly smaller decrease in real GDP in the first quarter than in the fourth reflected an upturnin PCE for durable and nondurable goods and a larger decrease in imports that were mostly offset bylarger decreases in private inventory investment and in nonresidential structures and a downturn infederal government spending.Motor vehicle output subtracted 1.36 percentage points from the first-quarter change in real GDPafter subtracting 2.01 percentage points from the fourth-quarter change. Final sales of computers added0.05 percentage point to the first-quarter change in real GDP after subtracting 0.02 percentage pointfrom the fourth-quarter change.NOTE.--Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwisespecified. Quarter-to-quarter dollar changes are differences between these published estimates. Percentchanges are calculated from unrounded data and are annualized. “Real” estimates are in chained (2000)dollars. Price indexes are chain-type measures.This news release is available onBEA’s Web sitealong with theTechnical NoteandHighlights related to this release.- more -

- 2 -



Comprehensive Revision of the National Income and Product AccountsBEA plans to release the results of the 13

comprehensive (or benchmark) revision of the nationalincome and product accounts (NIPAs), as part of the annual revision on July 31, 2009. Moreinformation on the revision is available on BEA’s Web site atwww.bea.gov/national/an1.htm, includinga link to an article in the March 2009 issue of the

Survey of Current Business

that discussed the changesin definitions and presentation that will be implemented in the revision. An article in the May

Survey

will describe changes in statistical methods, and the September

Survey

will contain an article thatdescribes the results of the revision in detail. The Web site also contains links to redesigned PCE tablestubs; other revised NIPA table stubs and press release stubs will be available in June.The price index for gross domestic purchases, which measures prices paid by U.S. residents,decreased 1.0 percent in the first quarter, compared with a decrease of 3.9 percent in the fourth.Excluding food and energy prices, the price index for gross domestic purchases increased 1.4 percent inthe first quarter, compared with an increase of 1.2 percent in the fourth. The federal pay raise forcivilian and military personnel added 0.3 percentage point to the change in the first quarter grossdomestic purchases price index.Real personal consumption expenditures increased 2.2 percent in the first quarter, in contrast to adecrease of 4.3 percent in the fourth. Durable goods increased 9.4 percent, in contrast to a decrease of 22.1 percent. Nondurable goods increased 1.3 percent, in contrast to a decrease of 9.4 percent. Servicesincreased 1.5 percent, the same increase as in the fourth.Real nonresidential fixed investment decreased 37.9 percent in the first quarter, compared with adecrease of 21.7 percent in the fourth. Nonresidential structures decreased 44.2 percent, compared witha decrease of 9.4 percent. Equipment and software decreased 33.8 percent, compared with a decrease of 28.1 percent. Real residential fixed investment decreased 38.0 percent, compared with a decrease of 22.8 percent.Real exports of goods and services decreased 30.0 percent in the first quarter, compared with adecrease of 23.6 percent in the fourth. Real imports of goods and services decreased 34.1 percent,compared with a decrease of 17.5 percent.Real federal government consumption expenditures and gross investment decreased 4.0 percent inthe first quarter, in contrast to an increase of 7.0 percent in the fourth. National defense decreased 6.4percent, in contrast to an increase of 3.4 percent. Nondefense increased 1.3 percent, compared with anincrease of 15.3 percent. Real state and local government consumption expenditures and grossinvestment decreased 3.9 percent, compared with a decrease of 2.0 percent.The real change in private inventories subtracted 2.79 percentage points from the first-quarterchange in real GDP after subtracting 0.11 percentage point from the fourth-quarter change. Privatebusinesses decreased inventories $103.7 billion in the first quarter, following decreases of $25.8 billionin the fourth quarter and $29.6 billion in the third.- more -

- 3 -



Real final sales of domestic product -- GDP less change in private inventories -- decreased 3.4percent in the first quarter, compared with a decrease of 6.2 percent in the fourth.

Gross domestic purchases

Real gross domestic purchases -- purchases by U.S. residents of goods and services whereverproduced -- decreased 7.8 percent in the first quarter, compared with a decrease of 5.9 percent in thefourth.

Disposition of personal income

Current-dollar personal income decreased $59.9 billion (2.0 percent) in the first quarter, comparedwith a decrease of $42.9 billion (1.4 percent) in the fourth.Personal current taxes decreased $193.5 billion in the first quarter, in contrast to an increase of $19.7 billion in the fourth.Disposable personal income increased $133.6 billion (5.1 percent) in the first quarter, in contrastto a decrease of $62.6 billion (2.3 percent) in the fourth. Real disposable personal income increased 6.2percent, compared with an increase of 2.7 percent.Personal outlays increased $18.1 billion (0.7 percent) in the first quarter, in contrast to a decreaseof $260.2 billion (9.5 percent) in the fourth. Personal saving -- disposable personal income less personaloutlays -- was $453.0 billion in the first quarter, compared with $337.4 billion in the fourth. Thepersonal saving rate -- saving as a percentage of disposable personal income -- was 4.2 percent in thefirst quarter, compared with 3.2 percent in the fourth. For a comparison of personal saving in BEA’snational income and product accounts with personal saving in the Federal Reserve Board’s flow of fundsaccounts and data on changes in net worth, go tohttp://www.bea.gov/bea/dn/nipaweb/Nipa-Frb.asp.

Current-dollar GDP

Current-dollar GDP -- the market value of the nation's output of goods and services -- decreased3.5 percent, or $124.8 billion, in the first quarter to a level of $14,075.5 billion. In the fourth quarter,current-dollar GDP decreased 5.8 percent, or $212.5 billion.- more -