Gross Domestic Product (Third Estimate), Corporate Profits (Revised Estimate), and GDP by Industry, First Quarter 2024

Historical release narrative reproduced from the official public-domain U.S. Bureau of Economic Analysis source. Statistical tables, charts, standard technical appendices and administrative material are omitted; formatting is adapted for reading. Figures retain the release's original vintage and may have been revised. Consult the linked source for the complete release and current data.

Real gross domestic product (GDP) increased at an annual rate of 1.4 percent in the first quarter of 2024 (table 1), according to the "third" estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2023, real GDP increased 3.4 percent.

The GDP estimate released today is based on more complete source data than were available for the "second" estimate issued last month. In the second estimate, the increase in real GDP was 1.3 percent. The upward revision primarily reflected a downward revision to imports, which are a subtraction in the calculation of GDP, and upward revisions to nonresidential fixed investment and government spending. These revisions were partly offset by a downward revision to consumer spending (refer to "Updates to GDP").

The increase in real GDP primarily reflected increases in consumer spending, residential fixed investment, nonresidential fixed investment, and state and local government spending that were partly offset by a decrease in private inventory investment. Imports increased (table 2).

Compared to the fourth quarter, the deceleration in real GDP primarily reflected decelerations in consumer spending, exports, and state and local government spending, and a downturn in federal government spending. These movements were partly offset by an acceleration in residential fixed investment. Imports accelerated.

Current‑dollar GDP increased 4.5 percent at an annual rate, or $312.2 billion, in the first quarter to a level of $28.27 trillion, an upward revision of $13.2 billion from the previous estimate (tables 1 and 3). More information on the source data that underlie the estimates is available in the "Key Source Data and Assumptions" file on BEA's website.

The price index for gross domestic purchases increased 3.1 percent in the first quarter, an upward revision of 0.1 percentage point from the previous estimate (table 4). The personal consumption expenditures (PCE) price index increased 3.4 percent, an upward revision of 0.1 percentage point. Excluding food and energy prices, the PCE price index increased 3.7 percent, an upward revision of 0.1 percentage point.

Personal Income

Current-dollar personal income increased $396.8 billion in the first quarter, a downward revision of $7.7 billion from the previous estimate. The increase primarily reflected increases in compensation (led by private wages and salaries) and personal current transfer receipts (led by government social benefits to persons) (table 8).

Disposable personal income increased $240.2 billion, or 4.8 percent, in the first quarter, a downward revision of $26.6 billion from the previous estimate. Real disposable personal income increased 1.3 percent, a downward revision of 0.6 percentage point.

Personal saving was $777.3 billion in the first quarter, a downward revision of $19.3 billion from the previous estimate. The personal saving rate—personal saving as a percentage of disposable personal income—was 3.8 percent in the first quarter, the same as the previous estimate.

Gross Domestic Income and Corporate Profits

Real gross domestic income (GDI) increased 1.3 percent in the first quarter, a downward revision of 0.2 percentage point from the previous estimate. The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 1.4 percent in the first quarter, the same as the previous estimate (table 1).

Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) decreased $47.1 billion in the first quarter, a downward revision of $26.0 billion from the previous estimate (table 10).

Profits of domestic financial corporations increased $65.0 billion in the first quarter, a downward revision of $8.7 billion from the previous estimate. Profits of domestic nonfinancial corporations decreased $114.5 billion, a downward revision of $0.3 billion. Rest-of-the-world profits increased $2.3 billion, a downward revision of $17.0 billion. In the first quarter, receipts increased $25.7 billion, and payments increased $23.4 billion.

Updates to GDP

With the third estimate, a downward revision to imports and upward revisions to nonresidential fixed investment, state and local government spending, exports, federal government spending, private inventory investment, and residential fixed investment were partly offset by a downward revision to consumer spending. For more information, refer to the Technical Note. For information on updates to GDP, refer to the "Additional Information" section that follows.

Real GDP by Industry

Today's release includes estimates of GDP by industry, or value added—a measure of an industry's contribution to GDP. Private goods-producing industries decreased 1.1 percent, private services-producing industries increased 1.9 percent, and government increased 2.3 percent (table 12). Overall, 15 of 22 industry groups contributed to the first-quarter increase in real GDP.

Within private goods-producing industries, the leading contributors to the decrease were durable goods manufacturing (led by primary metals) and nondurable goods manufacturing (led by petroleum and coal products). These decreases were partly offset by an increase in construction (table 13).

Within private services-producing industries, the leading contributors to the increase were retail trade (led by motor vehicle and parts dealers), finance and insurance (led by Federal Reserve banks, credit intermediation, and related activities), and health care and social assistance (led by ambulatory health care services).

The increase in government reflected increases in both state and local as well as federal government.

Gross Output by Industry

Real gross output—principally a measure of an industry's sales or receipts, which includes sales to final users in the economy (GDP) and sales to other industries (intermediate inputs)— increased 2.5 percent in the first quarter. Private goods-producing industries increased 1.2 percent, private services-producing industries increased 3.1 percent, and government increased 1.7 percent (table 16). Overall, 14 of 22 industry groups contributed to the increase in real gross output.

BEA will release results from the 2024 annual update of the National Economic Accounts, which include the National Income and Product Accounts as well as the Industry Economic Accounts, on September 26, 2024. The update will present revised statistics for GDP, GDP by Industry, and GDI. For details, refer to Information on 2024 Annual Updates to the National, Industry, and State and Local Economic Accounts.