GROSS DOMESTIC PRODUCT: FIRST QUARTER 2014 (ADVANCE ESTIMATE)
Real gross domestic product -- the output of goods and services produced by labor and property
located in the United States -- increased at an annual rate of 0.1 percent in the first quarter (that is, from
the fourth quarter of 2013 to the first quarter of 2014), according to the "advance" estimate released by
the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 2.6 percent.
Real gross domestic product -- the output of goods and services produced by labor and property
located in the United States -- increased at an annual rate of 0.1 percent in the first quarter (that is, from
the fourth quarter of 2013 to the first quarter of 2014), according to the "advance" estimate released by
the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 2.6 percent.
The increase in real GDP in the first quarter 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.
NOTE. Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise
specified. Quarter-to-quarter dollar changes are differences between these published estimates. Percent
changes are calculated from unrounded data and are annualized. "Real" estimates are in chained (2009)
dollars. Price indexes are chain-type measures.
The deceleration in real GDP growth in the first quarter primarily reflected downturns in exports
and in nonresidential fixed investment, a larger decrease in private inventory investment, a deceleration
in PCE, and a downturn in state and local government spending that were partly offset by an upturn in
federal government spending and a downturn in imports.
The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 1.4 percent in the first quarter, compared with an increase of 1.5 percent in the fourth.
Excluding food and energy prices, the price index for gross domestic purchases increased 1.4 percent in
the first quarter, compared with an increase of 1.8 percent in the fourth.
Real personal consumption expenditures increased 3.0 percent in the first quarter, compared with
an increase of 3.3 percent in the fourth. Durable goods increased 0.8 percent, compared with an increase
of 2.8 percent. Nondurable goods increased 0.1 percent, compared with an increase of 2.9 percent.
Services increased 4.4 percent, compared with an increase of 3.5 percent.
Real nonresidential fixed investment decreased 2.1 percent in the first quarter, in contrast to an
increase of 5.7 percent in the fourth. Nonresidential structures increased 0.2 percent, in contrast to a
decrease of 1.8 percent. Equipment decreased 5.5 percent, in contrast to an increase of 10.9 percent.
Intellectual property products increased 1.5 percent, compared with an increase of 4.0 percent. Real
residential fixed investment decreased 5.7 percent, compared with a decrease of 7.9 percent.
Real exports of goods and services decreased 7.6 percent in the first quarter, in contrast to an
increase of 9.5 percent in the fourth. Real imports of goods and services decreased 1.4 percent, in
contrast to an increase of 1.5 percent.
Real federal government consumption expenditures and gross investment increased 0.7 percent
in the first quarter, in contrast to a decrease of 12.8 percent in the fourth. National defense decreased 2.4
percent, compared with a decrease of 14.4 percent. Nondefense increased 5.9 percent, in contrast to a
decrease of 10.0 percent. Real state and local government consumption expenditures and gross
investment decreased 1.3 percent; it was unchanged in the fourth quarter.
The change in real private inventories subtracted 0.57 percentage point from the first-quarter
change in real GDP after subtracting 0.02 percentage point from the fourth-quarter change. Private
businesses increased inventories $87.4 billion in the first quarter, following increases of $111.7 billion
in the fourth quarter and $115.7 billion in the third.
Real final sales of domestic product -- GDP less change in private inventories -- increased 0.7
percent in the first quarter, compared with an increase of 2.7 percent in the fourth.
Gross domestic purchases
Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 0.9 percent in the first quarter, compared with an increase of 1.6 percent in the
fourth.
Disposition of personal income
Current-dollar personal income increased $122.0 billion, or 3.5 percent, in the first quarter,
compared with an increase of $78.5 billion, or 2.2 percent, in the fourth. The acceleration in personal
income primarily reflected an acceleration in government social benefits to persons.
Personal current taxes increased $18.9 billion in the first quarter, compared with an increase of
$21.4 billion in the fourth.
Disposable personal income increased $103.1 billion, or 3.3 percent, in the first quarter,
compared with an increase of $57.1 billion, or 1.8 percent, in the fourth. Real disposable personal
income increased 1.9 percent in the first quarter, compared with an increase of 0.8 percent in the fourth.
Personal outlays increased $131.8 billion, or 4.4 percent, in the first quarter, compared with an
increase of $127.0 billion, or 4.3 percent, in the fourth.
Personal saving -- disposable personal income less personal outlays -- was $518.7 billion in the
first quarter, compared with $547.4 billion in the fourth.
The personal saving rate -- personal saving as a percentage of disposable personal income -- was
4.1 percent in the first quarter, compared with 4.3 percent in the fourth. For a comparison of personal
saving in BEA’s national income and product accounts with personal saving in the Federal Reserve
Board’s financial accounts of the United States and data on changes in net worth, go to
