The annual growth rate of 2.2 percent in the first quarter of 2018 is down from 2.3 percent in its initial projection and 2.9 percent the previous quarter.
United States gross domestic product — the broadest measure of a nation’s overall economic health — grew at an annual rate of 2.2 percent in the first quarter of 2018, according to the “second” estimate from the Department of Commerce.
The first-quarter growth rate was revised downward from 2.3 percent in Commerce’s “advance” estimate. The growth rate is also down from the 2.9 percent annual rate seen in the fourth quarter of 2017 and is the slowest since the first quarter of 2017.
U.S. GDP grew at a 3.2 percent rate in the third quarter of 2017, 3.1 percent in the second quarter and 1.2 percent in the first quarter, meaning that real GDP increased 2.3 percent in 2017 compared with a 1.5 percent growth rate in 2016 and a 2.9 percent increase in 2015.
GDP is a calculation of the value of the goods and services produced by a nation’s economy minus the value of the goods and services used up in production.
The Commerce Department’s Bureau of Economic Analysis (BEA) said the deceleration in GDP growth in the first quarter reflected decreases in personal consumption expenditures, exports and residential fixed investment, as well as state, local and federal government spending. Those factors were offset in part by an increases in private inventory investment and nonresidential fixed investment, as well as a deceleration in imports, which are a subtraction in the calculation of GDP.
Real exports of goods and services grew 4.2 percent in the first quarter, according to BEA, compared with a 7 percent increase in the fourth quarter of 2017. Imports, meanwhile, grew just 2.8 percent, compared with a 14.1 percent jump the previous quarter.
Adding to the somewhat discouraging news for the U.S. economy, the most recent data from Commerce indicates new orders for durable goods slipped 1.7 percent to $248.5 billion in April, following revised increases of 2.7 percent in March and 4.5 percent in February. The April decrease in durable goods orders was the fifth in the last 12 months.
Commerce’s Census Bureau noted that transportation equipment, also down after two consecutive monthly increases, drove the decline in durable goods orders, tumbling 6.1 percent to $87.1 billion for the month. Excluding orders for transportation equipment, total durable goods orders ticked up 0.9 percent, according to Census.
Shipments of manufactured durable goods, which in April fell for the first time in nine months, slid up 0.1 percent to $246.7 billion, following revised increases of 0.7 percent each in February and March.
Q1 U.S. GDP estimate gets downgrade
