May 30 (UPI) -- Real U.S. gross domestic product grew at an annual rate of 1.3% in the first quarter, according to a second estimate Thursday from the Bureau of Economic Analysis.
The figures reported Thursday were based on more complete data than the advance estimate in April which showed a 1.6% increase in GDP.
The BEA said the updated estimate "primarily reflected a downward revision to consumer spending."
"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. " The BEA said in a statement. "Imports, which are a subtraction in the calculation of GDP, increased."
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The BEA said the deceleration in the first quarter real GDP "primarily reflected decelerations in consumer spending, exports, and state and local government spending and a downturn in federal government spending."
Current dollar GDP increased 4.3% at an annual rate.
Personal income was up, with current dollar income up $404.4 billion in the first quarter. Disposable income also increased by $266.7 billion or 5.3% in the first quarter.
The first quarter personal savings rate was 3.8%, or $796.6 billion.
Real gross domestic income was up 1.5% for the quarter compared with 3.6% in the fourth quarter of 2023.
In April stock prices slid on BEA's GDP report that showed an annual rate of 1.6%. Dow Jones economists had expected a 2.4% annual increase.
The fourth quarter 2023 GDP was stronger than expected.
As for inflation measured by the personal consumption expenditures index, the BEA said, "The price index for gross domestic purchases increased 3% in the first quarter, a downward revision of 0.1% from the previous estimate. The personal consumption expenditures (PCE) price index increased 3.3% percent, a downward revision of 0.1%."
Real gross domestic income increased by 1.5% in the first quarter, compared with a 3.6% increase in the fourth quarter of 2023.
Corporate production profits, with inventory valuation and capital consumption adjustments, decreased by $21.1 billion in the first quarter.
Financial corporation profits were up $73.7 billion while non-financial corporate profits dropped by $114.1 billion, according to the BEA.
