US GDP hike up 1.2% in 1Q 2017
Real disposable personal income up by 4.2 percent
Real gross domestic product (GDP) increased 1.2 percent at an annual rate in the first quarter of 2017, according to the second estimates of the national income and product accounts (NIPAs). The second estimate of the first-quarter percent change in real GDP was revised up 0.5 percentage point from the advance estimate of 0.7 percent.
The upward revision primarily reflected upward revisions to non-residential fixed investment, consumer spending, and state and local government spending that were partly offset by a downward revision to inventory investment. The first-quarter increase in real GDP reflected positive contributions from non-residential fixed investment, exports, residential fixed investment, and consumer spending.
These positive contributions were partly offset by negative contributions from inventory investment, federal government spending, and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased.
Prices of goods and services purchased by U.S. residents increased 2.6 percent in the first quarter of 2017 after increasing 2.0 percent in the fourth quarter of 2016. Energy prices increased less in the first quarter than in the fourth quarter, and food prices turned up.
Excluding food and energy, prices increased 2.3 percent after increasing 1.6 percent. Real disposable personal income (DPI) increased 1.7 percent in the first quarter of 2017 after decreasing 0.3 percent (revised) in the fourth quarter of 2016.
Current-dollar DPI increased 4.2 percent in the first quarter after increasing 1.7 percent (revised) in the fourth quarter. Real final sales of domestic product, real GDP less inventory investment, increased 2.2 percent in the first quarter of 2017 after increasing 1.1 percent in the fourth quarter of 2016.