GDP growth slows to 2.2% in first quarter of 2012

(Calculated Risk) In its first estimate for the first quarter of 2012, the Bureau of Economic Analysis reported Friday morning that real (inflation-adjusted) gross domestic product rose at an annual rate of 2.2 percent, below the 2.5 percent consensus of experts surveyed earlier this week by Bloomberg, and well below the 3 percent growth records for the fourth'and best'quarter of 2012.

The increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, private inventory investment, and residential fixed investment that were partly offset by negative contributions from federal government spending, nonresidential fixed investment, 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 a deceleration in private inventory investment and a downturn in nonresidential fixed investment that were partly offset by accelerations in PCE and in exports.

GDP gauges the total reported output of goods and services. It does not measure personal income or people's well-being.

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