The U.S. economy grew at an annual rate of 0.1 percent in the first quarter of 2014, the Bureau of Economic Analysis announced Wednesday.
The latest figures on real gross domestic product, a measure of the total output of goods and services, represent the “advance” estimate, which will later be revised by the federal government for better accuracy. The data also marks a slight downtick from growth in the fourth quarter of 2013 (roughly 2.6 percent).
Growth in the first quarter of 2014 can be attributed to positive contributions from personal consumption expenditures. However these positive contributions were offset by declines in “exports, private inventory investment, nonresidential fixed investment, residential fixed investment, and state and local government spending,” the Bureau of Economic Analysis reported.
There was, however, a slight uptick in federal government spending.
Federal government consumption expenditures and gross investment increased 0.7 percent in the first quarter, according to the Bureau of Economic Analysis.
This same figured decrease by 12.8 percent in the fourth quarter of 2014.
“National defense decreased 2.4 percent, compared with a decrease of 14.4 percent. Nondefense increased 5.9 percent, in contrast to a decrease of 10.0 percent,” the report said. “Real state and local government consumption expenditures and gross investment decreased 1.3 percent; it was unchanged in the fourth quarter.”
Imports, which are a subtraction in the calculation of GDP, decreased by 1.4 percent, a contrast to the fourth quarter’s increase of 1.5 percent.
Real personal consumption expenditures increased by 3.0 percent in the first quarter, compared to the increase of 3.3 percent in the fourth, the report said.
Durable goods in the “advance” estimate of the first quarter increased 0.8 percent, down from the increase of 3.3 percent in the fourth. Non-durable goods increased 0.1 percent, down from the fourth’s increase of 2.9 percent. Services increased 4.4 percent in the first quarter, up from the fourth’s posting of 3.5 percent.
Here’s a breakdown of the fourth quarter by its components:
Real final sales of domestic products, that is, GDP minus change in private inventories, increased 0.7 percent in the first quarter, down from the fourth’s increase of 2.7 percent.
Despite the lackluster figures, markets are trading mostly higher Wednesday:
Here are highlights from Wednesday release:
Follow Becket Adams (@BecketAdams) on Twitter