April 27, 2018

2018 First Quarter Growth Up From 2017

KEY TAKEAWAYS

  • Growth in the first quarter of 2018 was 2.3 percent, an increase from 1.2 percent in the first quarter of 2017, but a decrease from 2.9 percent in the fourth quarter of 2017.
  • This follows a trend; growth in the first quarter of the year has now been slower than previous quarters for three straight years.
  • First quarter annualized GDP change in 2014, 2016, and 2017 was -0.9, 0.6, and 1.2 percent.

The nation’s economy grew at an inflation-adjusted annual rate of 2.3 percent in the first quarter of 2018. This follows 2.3 percent growth for 2017 as a whole.

Although a drop from one quarter ago, this growth is still stronger than the first quarter of three of the last four years.In the first quarter of 2017, growth was 1.2 percent. In 2014, 2016, and 2017, disappointing growth numbers for the first quarter were followed by a strong rebound in the second quarter.

Personal consumption expenditures grew at 1.1 percent in the first quarter. Gross private domestic investment grew at 7.3 percent,and exports grew at 4.8 percent. Imports, a subtraction from GDP, increased by 2.6 percent. Federal government spending grew by 1.7 percent, while state and local government spending grew by 0.8 percent.

Issue Tags: Economy, Labor, Taxes