First-quarter GDP was revised down today, largely reflecting updated estimates of consumer spending on health care, which was substantially lower than originally reported, as well as exports, which were below the initial estimates. The GDP data can be volatile from quarter to quarter; a range of other data show a more positive picture for the first quarter, and more up-to-date indicators from April and May suggest that the economy is on track for a rebound in the second quarter. The recovery from the Great Recession, however, remains incomplete, and the President will continue to do everything he can to support the recovery, either by acting through executive action or by working with Congress on steps that would boost growth and speed job creation. FIVE KEY POINTS IN TODAY’S REPORT FROM THE BUREAU OF ECONOMIC ANALYSIS 1. Real gross domestic product (GDP) fell 2.9 percent at an annual rate in the first quarter of 2014, according to the third estimate from the Bureau of Economic Analysis. This drop follows an increase of 3.4 percent at an annual rate in the second half of 2013. The entire decline in overall GDP in the first quarter can be accounted for by a decline in exports and a slowdown in inventory investment, two particularly volatile components of GDP. In addition, several components were likely affected by unusually severe winter weather , including consumer spending on food services and accommodations, which fell for the first time in four years. read more

See the original post:
Third Estimate of GDP for the First Quarter of 2014