Real gross domestic product for the U.S. increased at an annual rate of 1.2 percent in the first quarter of 2017, according to the "second" estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 2.1 percent.
Profits from current production decreased $40.3 billion in the first quarter, in contrast to an increase of $11.2 billion in the fourth quarter.
The increase in real GDP in the first quarter reflected positive contributions from nonresidential fixed investment, exports, residential fixed investment, and PCE that were partly offset by negative contributions from private inventory investment, federal government spending, and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased.
The deceleration in real GDP in the first quarter primarily reflected a downturn in private inventory investment and a deceleration in PCE that were partly offset by an upturn in exports and an acceleration in nonresidential fixed investment.
Current-dollar GDP increased 3.4 percent, or $158.2 billion, in the first quarter to a level of $19,027.6 billion. In the fourth quarter, current-dollar GDP increased 4.2 percent, or $194.1 billion.
The price index for gross domestic purchases increased 2.6 percent in the first quarter, compared with an increase of 2 percent in the fourth quarter. The PCE price index increased 2.4 percent, compared with an increase of 2 percent. Excluding food and energy prices, the PCE price index increased 2.1 percent, compared with an increase of 1.3 percent.
