Daily News: May 2, 2014

Commerce Department: U.S. Economy Stalls Dramatically in Q1


Real gross domestic product increased at an annual rate of 0.1% in the first quarter of 2014, compared to Q4/13, according to the “advance” estimate released by the Bureau of Economic Analysis, U.S. Commerce Department. In the fourth quarter, real GDP increased 2.6%.

Data is based on source data that are incomplete or subject to further revision by the source agency. The “second” estimate for the first quarter, based on more complete data, will be released on May 29, 2014.

The increase in real GDP in Q1 primarily reflected a positive contribution from personal consumption expenditures (PCE) that was partly offset by negative contributions from exports, private inventory investment, nonresidential fixed investment, residential fixed investment, and state and local government spending. Imports, which are a subtraction in the calculation of GDP, decreased.

The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 1.4% in the first quarter, compared with an increase of 1.5% in the fourth. Excluding food and energy prices, the price index for gross domestic purchases increased 1.4% in the first quarter, compared with an increase of 1.8% in the fourth.

Real exports of goods and services decreased 7.6% in the first quarter, in contrast to an increase of 9.5% in the fourth. Real imports of goods and services decreased 1.4%, in contrast to an increase of 1.5%.

To read the full report, click here.