Please Note: Profits from current production, referred to as corporate profits with inventory valuation adjustment (IVA) and capital consumption (CCAdj) adjustment in the National Income and Product Accounts (NIPAs), is a measure of the net income of corporations before deducting income taxes that is consistent with the value of goods and services measured in GDP.
The IVA and CCAdj are adjustments that convert inventory withdrawals and depreciation of fixed assets reported on a tax-return, historical-cost basis to the current-cost economic measures used in the national income and product accounts. Profits for domestic industries reflect profits for all corporations located within the geographic borders of the United States. The rest-of-the-world (ROW) component of profits is measured as the difference between profits received from ROW and profits paid to ROW.
EMBARGOED UNTIL RELEASE AT 8:30 a.m. EDT, Thursday, May 25, 2023
Gross Domestic Product (Second Estimate), Corporate Profits (Preliminary Estimate), First Quarter 2023
Real gross domestic product (GDP) increased at an annual rate of 1.3 percent in the first quarter of 2023 (table 1), according to the "second" estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 2.6 percent.
The GDP estimate released today is based on more complete source data than were available for the "advance" estimate issued last month. In the advance estimate, the increase in real GDP was 1.1 percent (refer to "Updates to GDP"). The updated estimates primarily reflected an upward revision to private inventory investment.
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 (table 2).
Compared to the fourth quarter, the deceleration in real GDP in the first quarter primarily reflected a downturn in private inventory investment and a slowdown in nonresidential fixed investment. These movements were partly offset by an acceleration in consumer spending, an upturn in exports, and a smaller decrease in residential fixed investment. Imports turned up.
Current‑dollar GDP increased 5.4 percent at an annual rate, or $348.3 billion, in the first quarter to a level of $26.49 trillion, an upward revision of $20.4 billion from the previous estimate (tables 1 and 3). More information on the source data that underlie the estimates is available in the "Key Source Data and Assumptions" file on BEA's website.
The price index for gross domestic purchases increased 3.8 percent in the first quarter, the same as previously estimated. The personal consumption expenditures (PCE) price index increased 4.2 percent, the same as previously estimated. Excluding food and energy prices, the PCE price index increased 5.0 percent, an upward revision of 0.1 percentage point.
Personal Income
Current-dollar personal income increased $251.3 billion in the first quarter, a downward revision of $27.6 billion from the previous estimate. The increase in the first quarter primarily reflected increases in compensation (led by private wages and salaries) and government social benefits (table 8).
Disposable personal income increased $561.6 billion, or 12.3 percent, in the first quarter, a downward revision of $9.6 billion from the previous estimate. Real disposable personal income increased 7.8 percent, a downward revision of 0.2 percentage point.
Personal saving was $829.2 billion in the first quarter, a downward revision of $6.1 billion from the previous estimate. The personal saving rate—personal saving as a percentage of disposable personal income—was 4.2 percent in the first quarter, a downward revision of 0.6 percentage point.
Gross Domestic Income and Corporate Profits
Real gross domestic income (GDI) decreased 2.3 percent in the first quarter, compared with a decrease of 3.3 percent (revised) in the fourth quarter. The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, decreased 0.5 percent in the first quarter, compared with a decrease of 0.4 percent (revised) in the fourth quarter (table 1).
Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) decreased $151.1 billion in the first quarter, compared with a decrease of $60.5 billion in the fourth quarter (table 10).
Profits of domestic financial corporations decreased $25.4 billion in the first quarter, compared with a decrease of $59.0 billion in the fourth quarter. Profits of domestic nonfinancial corporations decreased $109.3 billion, compared with a decrease of $22.9 billion. Rest-of-the-world profits (net) decreased $16.4 billion, in contrast to an increase of $21.4 billion. In the first quarter, receipts increased $12.2 billion, and payments increased $28.6 billion.
Updates to GDP
With the second estimate, upward revisions to private inventory investment, state and local government spending, nonresidential fixed investment, consumer spending, and exports were partly offset by a downward revision to residential fixed investment. Imports were revised up. For more information, refer to the Technical Note. For information on updates to GDP, refer to the "Additional Information" section that follows.
| Advance Estimate | Second Estimate | |
|---|---|---|
| (Percent change from preceding quarter) | ||
| Real GDP | 1.1 | 1.3 |
| Current-dollar GDP | 5.1 | 5.4 |
| Real GDI | … | -2.3 |
| Average of Real GDP and Real GDI | … | -0.5 |
| Gross domestic purchases price index | 3.8 | 3.8 |
| PCE price index | 4.2 | 4.2 |
| PCE price index excluding food and energy | 4.9 | 5.0 |
Updates to Fourth-Quarter Wages and Salaries
In addition to presenting updated estimates for the first quarter, today's release presents revised estimates of fourth-quarter wages and salaries, personal taxes, and contributions for government social insurance, based on updated data from the Bureau of Labor Statistics Quarterly Census of Employment and Wages program. Wages and salaries are now estimated to have increased $53.0 billion in the fourth quarter, a downward revision of $135.4 billion. Personal current taxes are now estimated to have decreased $20.3 billion, a downward revision of $16.2 billion. Contributions for government social insurance are now estimated to have increased $8.1 billion, a downward revision of $17.4 billion. With the incorporation of these new data, real gross domestic income is now estimated to have decreased 3.3 percent in the fourth quarter, a downward revision of 2.2 percentage points from the previously published estimate.
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Next release, June 29, 2023, at 8:30 a.m. EDT
Gross Domestic Product (Third Estimate)
Corporate Profits (Revised)
Gross Domestic Product by Industry
First Quarter 2023
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