GDP and the Economy

Third Estimates for the First Quarter of 2024

July 8, 2024

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Real gross domestic product (GDP) increased at an annual rate of 1.4 percent in the first quarter of 2024, according to the “third” estimate of the National Income and Product Accounts (NIPAs) (chart 1 and table 1).1 With the third estimate, real GDP growth was revised up 0.1 percentage point from the “second” estimate issued in May. In the fourth quarter of 2023, real GDP increased 3.4 percent.

Chart 1. Real GDP: Percent Change from Preceding Quarter

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Chart 2. Real GDP: Contributions to the Percent Change in 2024:Q1

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The increase in first-quarter real GDP reflected increases in consumer spending, residential fixed investment, nonresidential fixed investment, state and local government spending, and exports that were partly offset by decreases in private inventory investment and federal government spending. Imports, which are a subtraction in the calculation of GDP, increased (chart 2 and table 1).2

  • The increase in consumer spending reflected an increase in services that was partly offset by a decrease in goods.
    • Within services, the leading contributors to the increase were health care (both out-patient services and hospital and nursing home services) as well as financial services and insurance (mainly banking and other financial services).
    • Within goods, spending on both durable and nondurable goods decreased. The leading contributors to the decrease were motor vehicles and parts as well as gasoline and other energy goods.
  • The increase in residential fixed investment was led by brokers' commissions and other ownership transfer costs and new single-family construction.
  • The increase in nonresidential fixed investment primarily reflected an increase in intellectual property products. The increase was led by software (prepackaged software) and research and development (business).
  • The increase in state and local government spending primarily reflected an increase in compensation of state and local government employees.
  • The increase in exports reflected an increase in services (led by telecommunications, computer, and information services) that was partly offset by a decrease in goods (led by industrial supplies and materials, notably nondurable goods).
  • The decrease in private inventory investment was led by decreases in wholesale trade and manufacturing.
  • The decrease in federal government spending primarily reflected a decrease in defense spending. The leading contributor to the decrease in defense spending was gross investment in equipment (mainly aircraft).
  • The increase in imports reflected increases in both goods and services. The leading contributors to the increase in goods were capital goods, except automotive; industrial supplies and materials; and consumer goods, except food and automotive. Within services, the increase was led by transport.

Compared to the fourth quarter of 2023, the deceleration in real GDP in the first quarter primarily reflected decelerations in consumer spending, exports, and state and local government spending and a downturn in federal government spending. These movements were partly offset by an acceleration in residential fixed investment. Imports accelerated.

Table 1. Real Gross Domestic Product by Expenditure and Related Measures
[Seasonally adjusted at annual rates]
Line Series Share of current-dollar GDP
(percent)		 Change from preceding period
(percent)		 Contribution to percent change in real GDP
(percentage points)
2024 2023 2024 2023 2024
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
1 GDP1 100.0 2.1 4.9 3.4 1.4 2.1 4.9 3.4 1.4
2 Personal consumption expenditures 67.7 0.8 3.1 3.3 1.5 0.55 2.11 2.20 0.98
3 Goods 22.0 0.5 4.9 3.0 −2.3 0.11 1.09 0.67 −0.51
4 Durable goods 7.7 −0.3 6.7 3.2 −4.5 −0.03 0.53 0.25 −0.35
5 Nondurable goods 14.3 0.9 3.9 2.9 −1.1 0.14 0.56 0.41 −0.15
6 Services 45.7 1.0 2.2 3.4 3.3 0.44 1.02 1.54 1.49
7 Gross private domestic investment 17.8 5.2 10.0 0.7 4.4 0.90 1.74 0.15 0.77
8 Fixed investment 17.6 5.2 2.6 3.5 7.0 0.90 0.46 0.61 1.19
9 Nonresidential 13.6 7.4 1.4 3.7 4.4 0.98 0.21 0.50 0.59
10 Structures 3.1 16.1 11.2 10.9 3.4 0.46 0.33 0.32 0.10
11 Equipment 5.0 7.7 −4.4 −1.1 1.6 0.38 −0.22 −0.05 0.08
12 Intellectual property products 5.5 2.7 1.8 4.3 7.7 0.15 0.10 0.23 0.41
13 Residential 4.0 −2.2 6.7 2.8 16.0 −0.09 0.26 0.11 0.59
14 Change in private inventories 0.1 --- --- --- --- 0.00 1.27 −0.47 −0.42
15 Net exports of goods and services −3.0 --- --- --- --- 0.04 0.03 0.25 −0.65
16 Exports 10.9 −9.3 5.4 5.1 1.6 −1.09 0.59 0.55 0.17
17 Goods 7.2 −16.0 7.7 6.2 −0.5 −1.31 0.55 0.45 −0.04
18 Services 3.7 6.2 1.0 2.8 5.9 0.22 0.04 0.10 0.21
19 Imports 13.9 −7.6 4.2 2.2 6.1 1.13 −0.56 −0.30 −0.82
20 Goods 11.3 −6.5 5.9 1.3 6.5 0.78 −0.64 −0.14 −0.71
21 Services 2.6 −12.2 −2.8 6.2 4.3 0.35 0.08 −0.15 −0.11
22 Government consumption expenditures and gross investment 17.5 3.3 5.8 4.6 1.8 0.57 0.99 0.79 0.31
23 Federal 6.5 1.1 7.1 2.4 −0.2 0.07 0.45 0.15 −0.02
24 National defense 3.6 2.3 8.4 0.5 −0.9 0.08 0.30 0.02 −0.03
25 Nondefense 2.9 −0.4 5.5 4.8 0.6 −0.01 0.15 0.14 0.02
26 State and local 11.0 4.7 5.0 6.0 3.0 0.50 0.53 0.64 0.33
Addenda:
27 GDI2 --- 0.5 1.9 3.6 1.3 --- --- --- ---
28 Average of GDP and GDI --- 1.3 3.4 3.5 1.4 --- --- --- ---
29 Final sales of domestic product --- 2.1 3.6 3.9 1.8 --- --- --- ---
30 Goods 30.6 0.9 7.3 2.6 −3.8 0.29 2.30 0.83 −1.18
31 Services 60.6 1.9 2.9 2.8 3.0 1.13 1.73 1.70 1.77
32 Structures 8.9 7.7 10.0 10.4 9.7 0.63 0.83 0.86 0.82
GDI
Gross domestic income
GDP
Gross domestic product
  1. The GDP estimates under the contribution columns are also percent changes.
  2. GDI is deflated by the implicit price deflator for GDP.

Note. Percent changes are from National Income and Product Accounts (NIPA) tables 1.1.1 and 1.2.1, contributions are from NIPA tables 1.1.2 and 1.2.2, and shares are from NIPA table 1.1.10 or are calculated from NIPA table 1.2.5.

U.S. Bureau of Economic Analysis

The third estimate of GDP includes estimates of GDP by industry, or value added—a measure of an industry's contribution to GDP. In the first quarter, private goods-producing industries decreased 1.1 percent, private services-producing industries increased 1.9 percent, and government increased 2.3 percent (chart 3 and table 2). Overall, 15 of 22 industry groups contributed to the first-quarter increase in real GDP (chart 4).

  • Within private goods-producing industries, the leading contributors to the decrease were durable-goods manufacturing (led by primary metals) and nondurable-goods manufacturing (led by petroleum and coal products). These decreases were partly offset by an increase in construction.
  • Within private services-producing industries, the leading contributors to the increase were retail trade (led by motor vehicle and parts dealers), finance and insurance (led by Federal Reserve banks, credit intermediation, and related activities), and health care and social assistance (led by ambulatory health care services).
  • The increase in government reflected increases in both state and local as well as federal government spending.
Chart 3. Real GDP by Sector: Percent Change from Preceding Period

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Chart 4. Contributions to Percent Change in Real GDP by Industry Group, 2024:Q1

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Table 2. Real Gross Domestic Product by Industry Group and Related Measures
[Seasonally adjusted at annual rates]
Line Series Share of current-dollar GDP
(percent)		 Change from preceding period
(percent)		 Contribution to percent change in real GDP
(percentage points)
2024 2023 2024 2023 2024
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
1 GDP1 100.0 2.1 4.9 3.4 1.4 2.1 4.9 3.4 1.4
2 Private industries 88.5 2.2 5.2 3.4 1.3 1.96 4.63 3.05 1.17
3 Agriculture, forestry, fishing, and hunting 0.8 3.6 −5.9 −1.7 −1.3 0.03 −0.06 −0.01 −0.01
4 Mining 1.3 29.1 12.1 4.7 −2.7 0.35 0.16 0.07 −0.04
5 Utilities 1.5 60.9 −27.2 19.4 −4.8 0.77 −0.50 0.28 −0.07
6 Construction 4.5 5.5 15.8 6.0 7.0 0.23 0.65 0.26 0.31
7 Manufacturing 10.1 6.5 9.2 8.5 −4.3 0.64 0.92 0.85 −0.45
8 Durable goods 5.5 6.4 4.0 6.0 −5.6 0.35 0.22 0.33 −0.32
9 Nondurable Goods 4.6 6.6 15.9 11.4 −2.8 0.30 0.70 0.52 −0.13
10 Wholesale trade 5.8 −5.2 −2.5 −1.3 1.2 −0.32 −0.15 −0.08 0.07
11 Retail trade 6.3 −2.8 23.4 8.3 5.6 −0.18 1.36 0.51 0.34
12 Transporation and warehousing 3.5 7.7 4.0 1.3 3.0 0.27 0.14 0.04 0.11
13 Information 5.4 2.2 14.6 2.2 1.6 0.12 0.75 0.12 0.09
14 Finance, insurance, real estate, rental, and leasing 20.9 −0.1 4.0 1.3 2.1 −0.02 0.83 0.27 0.43
15 Finance and insurance 7.4 −0.9 6.1 1.8 3.6 −0.06 0.44 0.13 0.26
16 Real estate and rental and leasing 13.5 0.3 2.9 1.0 1.3 0.04 0.39 0.14 0.17
17 Professional and business services 12.9 2.1 2.9 2.5 0.4 0.27 0.38 0.33 0.05
18 Professional, scientific, and technical services 8.0 6.0 4.0 3.4 0.1 0.46 0.32 0.27 0.01
19 Management of companies and enterprises 1.8 −1.1 6.2 2.2 1.0 −0.02 0.11 0.04 0.02
20 Administrative and waste management services 3.1 −5.2 −1.7 0.5 0.9 −0.17 −0.05 0.02 0.03
21 Educational services, health care, and social assistance 8.7 1.4 3.2 4.4 3.3 0.12 0.27 0.37 0.29
22 Educational services 1.2 −1.9 −0.6 6.8 2.1 −0.02 −0.01 0.08 0.02
23 Health care and social assistance 7.5 2.0 3.8 4.0 3.5 0.14 0.28 0.30 0.26
24 Arts, entertainment, recreation, accomodation, and food services 4.5 −4.6 −0.5 −1.1 1.8 −0.21 −0.02 −0.05 0.08
25 Arts, entertainment, and recreation 1.2 4.8 −6.7 −3.9 8.0 0.05 −0.08 −0.05 0.09
26 Accommodation and food services 3.3 −7.7 1.8 −0.1 −0.3 −0.27 0.06 0.00 −0.01
27 Other services, except government 2.2 −5.8 −5.2 3.6 −1.2 −0.13 −0.12 0.08 −0.03
28 Government 11.5 1.0 2.0 3.1 2.3 0.11 0.24 0.35 0.26
29 Federal 3.7 3.9 −0.7 3.4 2.2 0.14 −0.02 0.12 0.08
30 State and local 7.8 −0.3 3.3 2.9 2.3 −0.02 0.26 0.23 0.18
  Addenda:
31 Private goods-producing industries2 16.8 7.7 10.2 7.0 −1.1 1.26 1.68 1.17 −0.19
32 Private services-producing industries3 71.7 1.0 4.1 2.6 1.9 0.69 2.95 1.88 1.36
GDP
Gross domestic product
  1. The GDP estimates under the contribution columns are also percent changes.
  2. Consists of agriculture, forestry, fishing, and hunting; mining; construction; and manufacturing.
  3. Consists of utilities; wholesale trade; retail trade; transportation and warehousing; information; finance, insurance, real estate, rental, and leasing; professional and business services; educational services, health care, and social assistance; arts, entertainment, recreation, accommodation, and food services; and other services, except government.

Note. Percent changes are from these GDP by industry tables: “Value Added by Industry as a Percentage of Gross Domestic Product,” “Percent Changes in Chain-Type Quantity Indexes for Value Added by Industry,” and “Contributions to Percent Change in Real Gross Domestic Product by Industry.”

U.S. Bureau of Economic Analysis

Real gross output—principally a measure of an industry's sales or receipts, which includes sales to final users in the economy (GDP) and sales to other industries (intermediate inputs)—increased 2.5 percent in the first quarter (chart 5 and table 3). Private goods-producing industries increased 1.2 percent, private services-producing industries increased 3.1 percent, and government increased 1.7 percent. Overall, 14 of 22 industry groups contributed to the increase in real gross output.

Chart 5. Real Gross Output by Sector: Percent Change from Preceding Period

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Table 3. Real Gross Output by Industry Group and Related Measures
[Seasonally adjusted at annual rates]
Line Series Change from preceding period (percent)
2023 2024
Q2 Q3 Q4 Q1
1 All industries 1.4 3.5 2.4 2.5
2 Private industries 1.3 3.5 2.5 2.6
3 Agriculture, forestry, fishing, and hunting −1.0 −1.3 −0.8 −1.2
4 Mining −7.3 1.3 −3.6 −6.2
5 Utilities 2.8 10.2 −5.6 1.0
6 Construction 7.3 14.7 16.3 7.3
7 Manufacturing 3.9 1.6 0.9 0.1
8 Durable goods 8.0 0.1 −1.0 −3.7
9 Nondurable goods 0.0 3.1 2.9 4.0
10 Wholesale trade −8.9 −1.2 −1.8 0.2
11 Retail trade −1.9 12.1 4.5 2.5
12 Transporation and warehousing −0.3 1.9 2.2 −0.1
13 Information 1.7 8.4 3.4 4.7
14 Finance, insurance, real estate, rental, and leasing 5.4 4.3 −2.0 4.7
15 Finance and insurance 11.3 8.3 −4.4 7.5
16 Real estate and rental and leasing 1.3 1.6 −0.3 2.7
17 Professional and business services 0.4 −0.4 4.9 1.1
18 Professional, scientific, and technical services 0.8 −0.5 7.5 2.5
19 Management of companies and enterprises 3.3 7.9 2.8 −0.8
20 Administrative and waste management services −1.9 −4.2 0.5 −0.9
21 Educational services, health care, and social assistance 2.8 2.9 6.7 6.4
22 Educational services 2.8 3.1 1.1 4.3
23 Health care and social assistance 2.8 2.9 7.4 6.6
24 Arts, entertainment, recreation, accomodation, and food services −5.4 3.6 3.7 1.5
25 Arts, entertainment, and recreation −1.4 −8.8 −6.5 13.2
26 Accommodation and food services −6.6 7.7 7.0 −1.8
27 Other services, except government −2.7 −8.4 9.5 4.1
28 Government 1.8 3.3 1.8 1.7
29 Federal 1.0 3.4 −0.6 −0.7
30 State and local 2.1 3.3 2.9 2.8
  Addenda:
31 Private goods-producing industries1 3.5 4.0 3.7 1.2
32 Private services-producing industries2 0.6 3.3 2.0 3.1
  1. Consists of agriculture, forestry, fishing and hunting; mining; construction; and manufacturing.
  2. Consists of utilities; wholesale trade; retail trade; transportation and warehousing; information; finance, insurance, real estate, rental, and leasing; professional and business services; educational services, health care, and social assistance; arts, entertainment, recreation, accommodation, and food services; and other services, except government.

Note. Percent changes are from the table “Percent Changes in Chain-Type Quantity Indexes for Gross Output by Industry.”

U.S. Bureau of Economic Analysis

The U.S. Bureau of Economic Analysis' (BEA's) featured measure of inflation for the U.S. economy, the price index for gross domestic purchases (goods and services purchased by U.S. residents), increased 3.1 percent in the first quarter after increasing 1.9 percent in the fourth quarter (chart 6 and table 4).

Within gross domestic purchases, food prices increased 2.0 percent in the first quarter after increasing 1.4 percent in the fourth quarter. Prices for energy goods and services decreased 1.3 percent after decreasing 2.9 percent. Excluding food and energy, gross domestic purchases prices increased 3.3 percent after increasing 2.1 percent.

The price index for personal consumption expenditures (PCE) increased 3.4 percent in the first quarter after increasing 1.8 percent in the fourth quarter. The increase in PCE prices reflected an increase in prices for services that was partly offset by a decrease in prices for goods.

  • Within services, price increases were widespread. The leading contributors were housing and utilities (led by housing), financial services and insurance (mainly banking and other financial services), and health care (led by hospitals).
  • Within goods, the leading contributor to the decrease was gasoline and other energy goods (led by motor vehicle fuels, lubricants, and fluids).

Excluding food and energy, the “core” PCE price index increased 3.7 percent in the first quarter, following an increase of 2.0 percent in the fourth quarter.

Chart 6. Prices for Gross Domestic Purchases

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Table 4. Prices for Gross Domestic Purchases
[Percent change at annual rates; based on seasonally adjusted index numbers (2017=100)]
Line Series Change from preceding period
(percent)		 Contribution to percent change in gross domestic purchases prices
(percentage points)
2023 2024 2023 2024
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
1 Gross domestic purchases1 1.4 2.9 1.9 3.1 1.4 2.9 1.9 3.1
2 Personal consumption expenditures 2.5 2.6 1.8 3.4 1.63 1.71 1.18 2.24
3 Goods 0.2 0.9 −1.4 −0.5 0.05 0.20 −0.31 −0.11
4 Durable goods 0.1 −4.4 −3.5 −0.5 0.01 −0.35 −0.27 −0.03
5 Nondurable goods 0.3 3.9 −0.2 −0.6 0.04 0.55 −0.03 −0.08
6 Services 3.6 3.5 3.4 5.4 1.58 1.51 1.48 2.35
7 Gross private domestic investment −0.1 1.7 2.3 0.9 −0.02 0.30 0.39 0.17
8 Fixed investment 0.0 1.7 2.4 1.4 −0.01 0.30 0.41 0.24
9 Nonresidential 0.2 0.9 2.0 1.8 0.03 0.12 0.26 0.24
10 Structures 0.9 −2.3 2.1 −0.4 0.03 −0.07 0.06 −0.01
11 Equipment −1.1 2.3 1.5 4.1 −0.06 0.11 0.07 0.20
12 Intellectual property products 1.1 1.4 2.4 1.0 0.06 0.08 0.12 0.05
13 Residential −0.9 4.8 4.0 0.0 −0.03 0.18 0.15 0.00
14 Change in private inventories --- --- --- --- −0.01 0.00 −0.02 −0.08
15 Government consumption expenditures and gross investment −1.1 5.1 1.9 3.9 −0.18 0.84 0.32 0.66
16 Federal 2.1 4.0 4.0 4.1 0.13 0.25 0.25 0.26
17 National defense 1.9 4.2 4.7 4.2 0.07 0.15 0.16 0.15
18 Nondefense 2.3 3.7 3.0 4.1 0.06 0.10 0.08 0.11
19 State and local −2.9 5.7 0.6 3.8 −0.31 0.59 0.07 0.41
Addenda:
  Gross domestic purchases:                
20 Food 0.1 1.9 1.4 2.0 0.00 0.10 0.07 0.10
21 Energy goods and services −15.6 16.1 −2.9 −1.3 −0.46 0.42 −0.08 −0.03
22 Excluding food and energy 2.1 2.5 2.1 3.3 1.90 2.34 1.90 3.00
  Personal consumption expenditures:                
23 Food and beverages purchased for off-premises consumption 0.0 1.9 1.6 2.1 --- --- --- ---
24 Energy goods and services −15.6 16.2 −3.2 −1.3 --- --- --- ---
25 Excluding food and energy 3.7 2.0 2.0 3.7 --- --- --- ---
26 Gross domestic product 1.7 3.3 1.6 3.1 --- --- --- ---
27 Exports of goods and services −3.9 4.0 −2.2 2.8 --- --- --- ---
28 Imports of goods and services −4.8 0.3 0.5 2.8 --- --- --- ---
  1. The estimated prices for gross domestic purchases under the contribution columns are also percent changes.

Note. Most percent changes are from National Income and Product Accounts (NIPA) table 1.6.7; percent changes for personal consumption expenditures (PCE) for food and energy goods and services and for PCE excluding food and energy are from NIPA table 2.3.7. Contributions are from NIPA table 1.6.8. Gross domestic product, export, and import prices are from NIPA table 1.1.7.

U.S. Bureau of Economic Analysis

In the third estimate of the first quarter, the growth rate in real GDP was revised up 0.1 percentage point from the second estimate (table 5). The updated estimates primarily reflected a downward revision to imports and upward revisions to nonresidential fixed investment and state and local government spending that were partly offset by a downward revision to consumer spending.

  • For imports, both services and goods were revised down.
    • The revision to services primarily reflected a downward revision to travel that was partly offset by an upward revision to transport.
    • The revision to goods was led by “other goods” as well as durable consumer goods, except food and automotive.
  • The revision to nonresidential fixed investment primarily reflected upward revisions to structures and equipment.
    • For structures, the revision was led by manufacturing.
    • The revision to equipment was led by transportation equipment (notably, railroad equipment).
  • The revision to state and local government spending reflected an upward revision to investment in structures.
  • Within consumer spending, both services and goods were revised down.
    • For services, the revision primarily reflected downward revisions to “other services” (led by international travel) and transportation services (led by motor vehicle maintenance and repair).
    • For goods, the downward revision was led by gasoline and other energy goods.
Table 5. Second and Third Estimates for the First Quarter of 2024
[Seasonally adjusted at annual rates]
Line Series Change from preceding period (percent) Contribution to percent change in real GDP (percentage points)
Second estimate Third estimate Third estimate minus second estimate Second estimate Third estimate Third estimate minus second estimate
1 GDP1 1.3 1.4 0.1 1.3 1.4 0.1
2 Personal consumption expenditures 2.0 1.5 −0.5 1.34 0.98 −0.36
3 Goods −1.9 −2.3 −0.4 −0.42 −0.51 −0.09
4 Durable goods −4.1 −4.5 −0.4 −0.33 −0.35 −0.02
5 Nondurable goods −0.6 −1.1 −0.5 −0.09 −0.15 −0.06
6 Services 3.9 3.3 −0.6 1.76 1.49 −0.27
7 Gross private domestic investment 3.2 4.4 1.2 0.57 0.77 0.20
8 Fixed investment 6.0 7.0 1.0 1.02 1.19 0.17
9 Nonresidential 3.3 4.4 1.1 0.44 0.59 0.15
10 Structures 0.4 3.4 3.0 0.01 0.10 0.09
11 Equipment 0.3 1.6 1.3 0.01 0.08 0.07
12 Intellectual property products 7.9 7.7 −0.2 0.42 0.41 −0.01
13 Residential 15.4 16.0 0.6 0.57 0.59 0.02
14 Change in private inventories --- --- --- −0.45 −0.42 0.03
15 Net exports of goods and services --- --- --- −0.89 −0.65 0.24
16 Exports 1.2 1.6 0.4 0.13 0.17 0.04
17 Goods 1.7 −0.5 −2.2 0.12 −0.04 −0.16
18 Services 0.1 5.9 5.8 0.00 0.21 0.21
19 Imports 7.7 6.1 −1.6 −1.02 −0.82 0.20
20 Goods 7.2 6.5 −0.7 −0.78 −0.71 0.07
21 Services 9.6 4.3 −5.3 −0.24 −0.11 0.13
22 Government consumption expenditures and gross investment 1.3 1.8 0.5 0.23 0.31 0.08
23 Federal −0.7 −0.2 0.5 −0.05 −0.02 0.03
24 National defense −1.2 −0.9 0.3 −0.05 −0.03 0.02
25 Nondefense 0.0 0.6 0.6 0.00 0.02 0.02
26 State and local 2.6 3.0 0.4 0.28 0.33 0.05
  Addenda:
27 Final sales of domestic product 1.7 1.8 0.1 --- --- ---
28 GDI2 --- 1.3 --- --- --- ---
29 Average of GDP and GDI --- 1.4 --- --- --- ---
30 Gross domestic purchases price index 3.0 3.1 0.1 --- --- ---
31 GDP price index 3.0 3.1 0.1 --- --- ---
GDI
Gross domestic income
GDP
Gross domestic product

Note. Percent changes are from National Income and Product Account (NIPA) tables 1.1.1, contributions to percent change are from NIPA table 1.1.2, and shares are from NIPA table 1.1.10.

U.S. Bureau of Economic Analysis

  1. The GDP estimates under the contribution columns are also percent changes.
  2. GDI is deflated by the implicit price deflator for GDP.

Measured in current dollars, profits from current production (corporate profits with the inventory valuation adjustment (IVA) and the capital consumption adjustment (CCAdj)) decreased $47.1 billion, or 1.4 percent at a quarterly rate, in the first quarter (table 6). Domestic profits of financial corporations increased $65.0 billion, domestic profits of nonfinancial corporations decreased $114.5 billion, and rest-of-the-world profits (net) increased $2.3 billion. In the fourth quarter, profits increased $133.5 billion, or 4.1 percent.

Estimates of corporate profits were reduced by several settlements that were finalized in the first quarter. Settlements are recorded in the NIPAs on an accrual basis in the quarter when the settlement is finalized, regardless of when they are recorded on a company's financial statement. In the first quarter:

  • Paper manufacturer 3M and chemical makers Chemours, DuPont de Nemours, and Corteva reached settlements with U.S. local governments in the amount of $10.3 billion ($41.2 billion at an annual rate) and $1.2 billion ($4.7 billion at an annual rate), respectively, over contaminated water claims.
  • Diesel engine manufacturer Cummins agreed to pay $1.7 billion ($6.7 billion at an annual rate) in penalties for alleged violations of the Clean Air Act and California law.

The estimate of gross domestic income (GDI) was not impacted, because these settlements were recorded in the NIPAs as business current transfer payments to government, which offset the reduction to corporate profits.

Table 6. Corporate Profits
[Seasonally adjusted]
Line Series Billions of dollars (annual rate) Percent change from preceding quarter (quarterly rate)
Level Change from preceding quarter
2024 2023 2024 2023 2024
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
  Current production measures:                  
1 Corporate profits with IVA and CCAdj 3,367.1 6.9 108.7 133.5 −47.1 0.2 3.4 4.1 −1.4
2 Domestic industries 2,850.8 −15.2 99.9 142.4 −49.4 −0.6 3.8 5.2 −1.7
3 Financial 523.5 −54.2 9.0 5.9 65.0 −10.9 2.0 1.3 14.2
4 Nonfinancial 2,327.3 39.0 90.8 136.5 −114.5 1.8 4.1 5.9 −4.7
5 Rest of the world 516.3 22.1 8.8 −8.9 2.3 4.5 1.7 −1.7 0.5
6 Receipts from the rest of the world 1,040.0 25.8 22.0 −20.1 25.7 2.6 2.2 −1.9 2.5
7 Less: Payments to the rest of the world 523.7 3.7 13.2 −11.2 23.4 0.7 2.6 −2.2 4.7
9 Less: Taxes on corporate income 640.3 −6.3 12.6 28.2 29.2 −1.1 2.2 4.8 4.8
10 Equals: Profits after tax 2,726.8 13.2 96.1 105.2 −76.3 0.5 3.7 3.9 −2.7
11 Net dividends 1,894.0 15.6 −18.2 23.8 32.6 0.8 −1.0 1.3 1.8
12 Undistributed profits from current production 832.8 −2.4 114.3 81.4 −108.9 −0.3 15.3 9.5 −11.6
13 Net cash flow with IVA 3,364.1 32.3 142.1 118.2 −100.2 1.0 4.4 3.5 −2.9
CCAdj
Capital consumption adjustment
IVA
Inventory valuation adjustment

Note. Levels of these and other profits series are shown in National Income and Product Accounts tables 1.12 and 6.16D.

U.S. Bureau of Economic Analysis

Industry profits (corporate profits by industry with IVA) increased $38.7 billion, or 1.0 percent at a quarterly rate, in the first quarter of 2024 after increasing $140.5 billion, or 3.9 percent, in the fourth quarter of 2023 (chart 7 and table 7). Domestic profits increased $36.4 billion in the first quarter, reflecting an increase in financial industries that was partly offset by a decrease in nonfinancial industries (led by manufacturing).

Profits after tax (without IVA and CCAdj)—BEA's profits measure that is conceptually most like the profits for companies in the Standard & Poor's 500 Index—increased $71.9 billion in the first quarter after increasing $78.5 billion in the first quarter.

Chart 7. Corporate Profits with Inventory Valuation Adjustment in 2024:Q1, Change From Preceding Quarter

[Click chart to expand]

Note. October 9, 2024: An incorrect version of chart 7 appeared with this article when originally published. The correct chart is now shown.

Table 7. Corporate Profits by Industry
[Seasonally adjusted]
Line Series Billions of dollars (annual rate) Percent change from preceding quarter (quarterly rate)
Level Change from preceding quarter
2024 2023 2024 2023 2024
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
  Industry profits:                  
1 Corporate profits with IVA 3,799.4 10.8 106.5 140.5 38.7 0.3 3.0 3.9 1.0
2 Domestic industries 3,283.1 −11.3 97.7 149.5 36.4 −0.4 3.3 4.8 1.1
3 Financial 626.3 −54.7 9.2 6.5 73.7 −9.2 1.7 1.2 13.3
4 Nonfinancial 2,656.8 43.4 88.6 142.9 −37.3 1.8 3.6 5.6 −1.4
5 Utilities 51.5 7.0 −4.6 −2.4 8.8 16.4 −9.3 −5.3 20.7
6 Manufacturing 694.8 −27.7 32.5 36.9 −86.0 −3.7 4.6 5.0 −11.0
7 Wholesale trade 233.2 −5.6 5.6 18.9 −19.2 −2.4 2.5 8.1 −7.6
8 Retail trade 386.4 38.3 20.9 19.7 −7.6 12.1 5.9 5.3 −1.9
9 Transportation and warehousing 134.8 15.6 −10.3 7.3 10.9 14.1 −8.1 6.3 8.8
10 Information 218.2 15.2 5.6 7.4 17.6 8.8 3.0 3.8 8.8
11 Other nonfinancial 937.9 0.5 38.8 55.1 38.1 0.1 4.8 6.5 4.2
12 Rest of the world 516.3 22.1 8.8 −8.9 2.3 4.5 1.7 −1.7 0.5
  Addenda:
13 Profits before tax (without IVA and CCAdj) 3,808.5 15.5 127.5 106.8 101.1 0.4 3.7 3.0 2.7
14 Profits after tax (without IVA and CCAdj) 3,168.2 21.8 114.9 78.5 71.9 0.8 4.0 2.6 2.3
15 IVA −9.1 −4.8 −21.0 33.8 −62.4 --- --- --- ---
16 CCAdj −432.3 −3.8 2.1 −7.0 −85.8 --- --- --- ---
CCAdj
Capital consumption adjustment
IVA
Inventory valuation adjustment

Note. Levels of these and other profits series are shown in National Income and Product Accounts tables 1.12, 1.14, 1.15, and 6.16D.

U.S. Bureau of Economic Analysis

 

  1. “Real” estimates are in chained (2017) dollars, and price indexes are chain-type measures. Each GDP estimate for a quarter (advance, second, and third) incorporates increasingly comprehensive and improved source data; for more information, see “The Revisions to GDP, GDI, and Their Major Components” in the January 2018 Survey of Current Business. Quarterly estimates are expressed at seasonally adjusted annual rates, which reflect a rate of activity for a quarter as if it were maintained for a year.
  2. In this article, “consumer spending” refers to “personal consumption expenditures,” “inventory investment” refers to “change in private inventories,” and “government spending” refers to “government consumption expenditures and gross investment.”