Domestic profits of financial corporations increased $26.3 billion in the first quarter, compared
with an increase of $29.9 billion in the fourth. Domestic profits of nonfinancial corporations increased
$15.4 billion in the first quarter, compared with an increase of $28.4 billion in the fourth. In the first
quarter, real gross value added of nonfinancial corporations increased 3.8 percent. Profits per unit of
real product increased, reflecting an increase in unit prices and a decrease in unit labor costs; unit
nonlabor costs were unchanged.
The increase in real GDP in the first quarter reflected positive contributions from personal
consumption expenditures (PCE)
, exports, residential fixed investment, nonresidential fixed investment,
and private inventory investment that were partly offset by negative contributions from federal
government spending and state and local government spending. Imports, which are a subtraction in the
calculation of GDP, increased.
The deceleration in real GDP in the first quarter primarily reflected decelerations in private
inventory investment and in nonresidential fixed investment that were partly offset by accelerations in
PCE, in exports, and in residential fixed investment and a deceleration in imports.