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Gross Domestic Product

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 3.2 percent in the first quarter of 2010,
(that is, from the fourth quarter to the first quarter), according to the “advance” estimate released by
the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 5.6 percent.

The Bureau emphasized that the first-quarter advance estimate released today is based on source
data that are incomplete or subject to further revision by the source agency (see the box on page 3). The
“second” estimate for the first quarter, based on more complete data, will be released on May 27, 2010.

The increase in real GDP in the first quarter primarily reflected positive contributions from
personal consumption expenditures (PCE), private inventory investment, exports, and nonresidential
fixed investment that were partly offset by decreases in state and local government spending and in
residential fixed investment. 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 exports, a downturn in residential fixed investment, and a larger decrease in
state and local government spending that were partly offset by an acceleration in PCE and a deceleration
in imports.

Motor vehicle output added 0.52 percentage point to the first-quarter change in real GDP after
adding 0.45 percentage point to the fourth-quarter change. Final sales of computers added 0.19
percentage point to the first-quarter change in real GDP after adding 0.01 percentage point to the fourth-
quarter change.

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