In its third estimate, the US Bureau of Economic Analysis (BEA) has revised upwards the country’s economic growth for the first quarter of 2023.
Real gross domestic product (GDP) is now estimated to have grown at an annual rate of two per cent for Q1 2023, up from the 1.3 per cent previously estimated. For Q4 2022, real GDP’s growth rate was 2.6 per cent.
The revision follows increases in exports and consumer spending, which were slightly offset by decreases in nonresidential fixed investment and federal government spending. Imports were revised down.
Growth areas
The growth in real GDP for Q1 2023 was due to increases in consumer spending, exports, state and local government spending, federal government spending, and non-residential fixed investment, partly offset by declines in residential fixed investment and private inventory investment. Imports also increased.
The slowdown in real GDP growth in Q1 2023 relative to Q4 2022 was primarily due to a fall in private inventory investment and non-residential fixed investment. This was offset by an increase in consumer spending, exports and in residential fixed investment.
The first quarter’s current‑dollar GDP climbed at an annual rate of 6.1 per cent or $391.8 billion to US$26.53 trillion, up from the previous estimate. For Q1 2023, the price index for gross domestic purchases went up 3.8 per cent, same as the previous estimate.
Consumption expenditure increased
The personal consumption expenditures (PCE) price index increased 4.1 per cent, revised down 0.1 percentage point. The PCE price index excluding food and energy prices increased 4.9 per cent, revised down 0.1 percentage point.
In the first quarter, current-dollar personal income increased by US$278.0 billion, mainly due to increased compensation and personal current transfer receipts. Disposable personal income increased by 12.9 per cent or US$587.9 billion, while personal saving reached US$840.9 billion with a 4.3 per cent personal saving rate.
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