US real gross domestic product grew faster than previously estimated, increasing at an annual rate of 1.3% in the first quarter of 2023, according to the second estimate released today by the US Bureau of Economic Analysis. The figure represents an upward revision from the previous advance estimate of 1.1%.
The updated estimates were primarily driven by an upward revision to private inventory investment.
The 1.3% increase in real GDP during the first quarter reflected increases in consumer spending, exports, federal government spending, state and local government spending, and nonresidential fixed investment, partly offset by decreases in private inventory and residential fixed investment.
Meanwhile, imports, which are a subtraction in the calculation of GDP, increased in the first quarter.
GDP had increased at an annual rate of 2.6% in the fourth quarter.
The deceleration in real GDP from the fourth quarter resulted from a downturn in private inventory investment and a slowdown in nonresidential fixed investment. However, these movements were partly offset by an acceleration in consumer spending, an upturn in exports and a smaller decrease in residential fixed investment.
Today’s announcement reflects the second estimate of first-quarter GDP. A third estimate will be released on June 29.