The United States economy contracted at an annual rate of 0.5 percent in the first quarter of 2023, which is the fourth quarter out of the last five with negative growth, according to new data from the Bureau of Economic Analysis (BEA).
The BEA found that real gross domestic income (GDI) decreased 2.3 percent in the first quarter after decreasing 3.3 percent in the fourth quarter – the worst consecutive declines since the beginning of the COVID-19 pandemic.
While real gross domestic product (GDP) increased 1.3 percent. According to the BEA’s report, 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.”
Additionally, the BEA found that 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.”
“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,” the report added.