The GDP growth of the United States increased at an annual rate of 2.5 percent in the first quarter of 2013 giving a good start to the US economy. This was an increase of 0.4 percent from the fourth quarter but was below the 3 percent estimate by the average analysts.
According to the US department of commerce, the GDP growth in the first quarter was primarily backed by the personal consumption expenditures (PCE), private inventory investment, exports, residential investment, and nonresidential fixed investment. However, the factors like the federal government spending and state and local government spending negatively affected the GDP.
The motor vehicle segment contributed 0.24 percentage points in the first quarter to the real GDP, compared to 0.18 percentages in the fourth quarter. The final sales of computers took away 0.01 percentage points from the first quarter change in real GDP.
The price index for gross domestic purchases surged 1.1 percent in the first quarter. It measures the price paid by the residents of the United States. In the fourth quarter, this number increased 1.6 percent. The price index for gross domestic purchase increased 1.3 percent in the first quarter after excluding food and energy prices.
The increase in the real personal consumption expenditures was marked at 3.2 percent in the first quarter, an increase over 1.8 percent in the fourth quarter of 2012. There was also an increase in the durable goods at 8.1 percent, which is a decline from 13.6 percent in the fourth quarter. Non-durable goods posted an increase of 1.0 percent, compared to increase of 0.1 percent.
The real non-residential fixed investment surged 2.1 percent in Q1 2013 compared to increase of 13.2 percent in the fourth quarter. The decline was seen in non-residential structures at 0.3 percent, compared to an increase of 16.7 percent.
The contribution from equipment and software surged 3.0 percent, an increase of 11.8 percent. Real residential fixed investment contributed at 12.6 percent as against an increase of 17.6 percentages in the previous quarter.
Real exports of goods and services surged 2.9 percent in the first quarter, compared to decline of 2.8 percent in the fourth quarter. There was an increase in the real imports of goods and services at 5.4 percent, compared to a decrease of 4.2 percent.
The decline was posted in real federal government consumption expenditures and gross investment at 8.4 percent in the Q1 2013, as against a decline of 14.8 percent in the fourth in 2012. National defense contribution declined 11.5 percent, compared with a decrease of 22.1 percent. The non-defense sector contribution declined 2.0 percent, compared to an increase of 1.7 percent in the previous quarter.
Decline was also recorded in real state, and local government consumption expenditures and gross investment decreased at 1.2 percent as against a decrease of 1.5 percent. Private businesses increased inventories $50.3 billion in the first quarter, compared to surge of $13.3 billion in the fourth quarter and $60.3 billion in the third.
The “second” revised estimate for the first quarter, which will be based in more complete date, will be released on May 30, 2013.
