By Tom Burnett CFA
On June 29, 2022, the Bureau of Economic Analysis released its third and final estimate of first quarter Gross Domestic Product. Real GDP decreased at an annual rate of 1.6% in the quarter. By comparison, GDP increased by an annual rate of 6.9% in the fourth quarter of 2021. The final Q1 estimate was adjusted to a rate of 1.6% from the earlier estimate of 1.5%. This decline comes after six consecutive quarters of increases in the GDP growth rates. Retail trade and nondurable goods manufacturing were the leading contributors to the first quarter decline.
The price index for gross domestic purchases increased by 8.0% in the first quarter, compared with an increase of 7.0% in the fourth quarter of 2021. The PCE Price Index rose 7.1% from the first quarter of 2021. The Core rate, excluding food and energy, increased by 5.2% from a year earlier.
The next news release (Q2 GDP rate) will be issued July 28, 2022.
Tom Burnett CFA is Director of Research