Provided by the Department of Commerce
Official Release: News Release 

The 1st quarter GDP was revised up to 1% thanks to stronger gains in consumption and exports. The final rate for the 4th quarter was 0.6% so growth increased from the 4th quarter better than expected, avoiding a recession. Consumer spending was revised up to 1.1% growth, with spending on services outpacing a decline in durable and nondurable goods purchases. Exports grew 5.4% at an annual rate, contributing 0.66 percentage points to GDP growth, almost 2/3rds of the final figure. In the second quarter, stimulus checks will most likely boost spending and give GDP growth a bit of a boost. Will that be enough power a recovery is unclear, as the potential is there for higher energy prices and commodity prices to fuel inflation, limiting a sustained rebound in the economy. Inflation gauges such as the personal consumption expenditures - excluding food and energy - rose 2.3%, at an annual rate, above the Fed's preferred range. Corporate profits after taxes fell 7.8%, sharper that estimated earlier. Housing continued to struggle, with residential fixed investment plunging by 24.6%.

From the Release: "The final estimate of the first-quarter increase in real GDP is 0.1 percentage point, or $1.7 billion, higher than the preliminary estimate issued last month. The small upward revision to the percent change in real GDP primarily reflected upward revisions to exports, to personal consumption expenditures, and to equipment and software that were largely offset by an upward revision to imports and a downward revision to private nonfarm inventory investment.

Real personal consumption expenditures increased 1.1 percent in the first quarter, compared with an increase of 2.3 percent in the fourth.

Real exports of goods and services increased 5.4 percent in the first quarter, compared with an increase of 6.5 percent in the fourth.

Excluding food and energy prices, the price index for gross domestic purchases increased 2.3 percent in the first quarter, the same as in the fourth."

GDP Product Price Index: 2.6%, advance 2.6%, pr. 2.6% (4Q)
Core PCE: 2.1%, advance 2.2%, pr. 2.5% (4Q)

Advance Annualized version for 1st Quarter.
Provided by: Department of Commerce
Official Release: Press Release 

GDP Product Price Index: 2.6%, forecast 3.0%, pr 2.6%
Core PCE: 2.2%, forecast 2.2%, pr. 2.5%

The US economy expanded at an annual pace of 0.6%, higher than consensus forecasts and matched the 4th quarter rate. The GDP data was bolstered by increased spending on inventories which added 0.81% to overall GDP, and without which the results would have been negative. Consumer spending was up 1% compared to 2.3% in the 4th quarter. Housing, measured as residential fixed investment fell 26.7%, reducing GDP by 1.23% points. Exports were up 5.5%, while imports increased 2.5%, a net gain for the US economy. Business spending was down 2.5% compared to a 6% increase in the 4th quarter.

Weaker consumer spending, a sick housing market, and a cut back in spending by businesses paint a picture of a very poor 1st quarter, saved by a buildup of inventories, which may cause harm later on if firms are unable to unload their inventories and then reduce new orders hurting manufacturers. 

From the Release:

"The increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures (PCE) for services, private inventory investment, exports of goods and services, and federal government spending that were partly offset by negative contributions from residential fixed investment and PCE for durable goods. Imports, which are a subtraction in the calculation of GDP, increased.

The increase in real GDP is the same as in the fourth quarter, reflecting an upturn in inventory investment that was offset by an upturn in imports, and downturns in nonresidential structures, in PCE for durable goods, and in PCE for nondurable goods."

Final Annualized version for 4th Quarter.
Provided by: Department of Commerce

GDP Defaltor Annualized q/q: 2.4%, forecast 2.7%, pr. 2.7%

Little change was expected and little change was made to the preliminary estimate of Q4 GDP for 2007. Growth was an anemic annual rate of 0.6%. This was the quarter that started to show significant indications of a slowdown, especially coming after a third quarter where the annual real growth rate was a respectable 4.9%. 

Preliminary Annualized versions for 4th Quarter.
Provided by: Department of Commerce

Personal Consumption (4Q P): 1.9%, forecast 2.0%, pr. 2.0%
Core PCE (4Q P): 2.7%, forecast 2.7%, pr. 2.7%

There was no change between the advance release of 4th quarter GDP and today's preliminary advance. The 4th quarter's annual rate of 0.6% is quite weak compared to the 3rd quarter's 4.9% annualized rate. Exports were revised higher to 4.8%, compared to an initial 3.9% increase in the advance figures. Imports declined by 1.9%.

"Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 0.6 percent in the fourth quarter of 2007, according to preliminary estimates released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 4.9 percent.

The increase in real GDP in the fourth quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, nonresidential structures, state and local government spending, and equipment and software that were largely offset by negative contributions from private inventory investment and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, decreased. The deceleration in real GDP growth in the fourth quarter primarily reflected a downturn in inventory investment and decelerations in exports, in PCE, and in federal government spending that were partly offset by a downturn in imports."

Advance Annualized versions for 4th Quarter.
News Release from the Department of Commerce

GDP Price Index: 2.6%, forecast 2.6%, pr. 1.0%
Core PCE: 2.7%, 2.4%, pr. 2.0%
Personal Consumption: 2.0%, forecast 2.8%, pr. 2.8%.

The 4th quarter saw a big drop in GDP growth, as it recorded an annual rate of 0.6% compared to 4.9% in the 3rd quarter. The result showed growth that was smaller than expected for the quarter. Inflation was higher, as the Personal Consumption Index increased 3.9%, and the "core" PCE was up 2.7%. Exports, slowed from their high rate in the 3rd quarter (19.1%), to a more modest pace in the 4th quarter (3.9%). Business inventories were down $32.9 bln, reversing the 3rd quarter stronger figure (24.7 bln). Housing exerted a negative drag on the economy, as "real residential fixed investment" recording a 23.9% decline in the 4th quarter. "Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 0.2 percent in the fourth quarter, compared with an increase of 3.3 percent in the third."

For all of 2007, the economy expanded 2.2 percent, the least in five years, to $11.6 trillion after adjusting for inflation.