Current-dollar GDP has grown to $197.6 billion in the first quarter
The gross domestic product jumped at an annual rate of 3.2% in the first quarter of 2019, according to the advance estimate from the Bureau of Economic Analysis.
The estimate showed that the real GDP increased from 2.2% in the past three months. This marked the first growth acceleration since mid-2018, and it is much faster than expected, according to Mortgage Bankers Association Chief Economist Mike Fratantoni.
"Although this advance estimate is subject to revision, if it holds up, this faster growth should continue to provide strong support for the job and housing markets,” Fratantoni said. “Growth was driven in the first quarter by an increase in inventories and a strong reading on net exports, two factors which could be reversed in the second quarter. Household spending growth actually slowed a bit in the first quarter, which is a bit contrary to recent strong readings on retail sales. Overall, a solid start of the year for the economy.”
Positive contributions from nonresidential fixed investment, personal consumption expenditures, private inventory investment, as well as state and local government spending all helped push the real GDP increase in the first quarter.
However, negative contributions from residential fixed investment slightly offset the rise in GDP.
Current-dollar GDP rose 3.8% ($197.6 billion) in the first quarter to a level of $21.06 trillion, but dropped from the fourth quarter’s 4.1% ($206.9% billion).
The gross domestic price purchase index inched up 0.8% in the first quarter, down from 1.7% in the fourth quarter. Personal consumption expenditures grew 0.6%, down from 1.5% last quarter.
