Q1 GDP Second Estimate: Real GDP at 1.3%, Faster Than Expected

Real gross domestic product increased at an annual rate of 1.3% in Q1 2023, according to the second estimate. This is slower than the Q4 2022 GDP third estimate of 2.6% growth but quicker than the initial estimate of 1.1% growth.

Here is the opening text from the Bureau of Economic Analysis news release:

The increase in real GDP reflected increases in consumer spending, exports, federal government spending, state and local government spending, and nonresidential fixed investment that were partly offset by decreases in private inventory investment and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased. [Full Release]

Gross Domestic Product (GDP)

Real gross domestic product (GDP) measures how fast or slowly the economy is growing and measures the inflation-adjusted value of all goods and services produced by the economy. It is considered the broadest measure of economic activity and the primary indicator of an economy's health. The Bureaus of Economic Analysis (BEA) releases real GDP data on a monthly basis. There are 3 versions released a month apart, advance, second, and final, each incorporating data that was previously unavailable. Economists can use GDP to determine whether an economy is growing or experiencing a recession.