New Delhi:
The latest estimate revised first-quarter real gross domestic product (GDP) growth upward by 0.5 percentage point from the second estimate.
US commerce department stated, “Real GDP was revised up 0.5 percentage point from the second estimate, primarily reflecting a downward revision to imports, which are a subtraction in the calculation of GDP, that was partly offset by a downward revision to consumer spending”
According to the BEA, the increase in real GDP during the January-March quarter was supported by investment, exports, government spending and consumer spending.
From an industry perspective, the growth in the economy reflected increases in real value added of 7.5 per cent for government, 4.5 per cent for private goods-producing industries and 0.8 per cent for private services-producing industries.
The leading contributors to GDP growth were the information sector, the federal government, professional, scientific and technical services, and durable goods manufacturing. These gains were partly offset by declines in retail trade, wholesale trade, and finance and insurance activities.
The US department also showed that real gross domestic income (GDI) increased 1.2 per cent in the first quarter, revised upward by 0.3 percentage point from the previous estimate.
The average of real GDP and real GDI, a broader measure of economic activity, increased 1.7 per cent during the quarter, revised up by 0.4 percentage point.
Meanwhile, real final sales to private domestic purchasers, which combines consumer spending and gross private fixed investment, increased 1.7 per cent in the first quarter. However, this figure was revised down by 0.7 percentage point from the previous estimate.
It also highlighted that corporate profits also improved during the quarter. Profits from current production increased by USD 74.4 billion in the first quarter, revised upward by USD 34 billion from the earlier estimate.
On the inflation front, the price index for gross domestic purchases increased 3.6 per cent in the first quarter, revised up by 0.1 percentage point. The personal consumption expenditures (PCE) price index rose 4.6 per cent, while the core PCE price index, which excludes food and energy, increased 4.4 per cent, unchanged from the previous estimate. (ANI)
