The following is the unedited transcript of the news release from the U.S. Bureau of Economic Analysis.


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 first quarter of 2008, according to advance estimates released by the Bureau of Economic Analysis. In the fourth quarter, real GDP also increased 0.6 percent.

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 sales of computers contributed 0.12 percentage point to the first-quarter growth in real GDP after contributing 0.16 percentage point to the fourth-quarter growth. Motor vehicle output subtracted 0.30 percentage point from the first-quarter growth in real GDP after subtracting 0.86 percentage point from the fourth-quarter growth.

The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 3.5 percent in the first quarter, compared with an increase of 3.7 percent in the fourth. Excluding food and energy prices, the price index for gross domestic purchases increased 2.2 percent in the first quarter, compared with an increase of 2.3 percent in the fourth. About 0.3 percentage point of the first-quarter increase in the index was accounted for by the pay raise for federal civilian and military personnel, which is treated as an increase in the prices of employee services purchased by the federal government.

Real personal consumption expenditures increased 1.0 percent in the first quarter, compared with an increase of 2.3 percent in the fourth. Durable goods decreased 6.1 percent, in contrast to an increase of 2.0 percent. Nondurable goods decreased 1.3 percent, in contrast to an increase of 1.2 percent. Services increased 3.4 percent, compared with an increase of 2.8 percent.

Real nonresidential fixed investment decreased 2.5 percent in the first quarter, in contrast to an increase of 6.0 percent in the fourth. Nonresidential structures decreased 6.2 percent, in contrast to an increase of 12.4 percent. Equipment and software decreased 0.7 percent, in contrast to an increase of 3.1 percent. Real residential fixed investment decreased 26.7 percent, compared with a decrease of 25.2 percent.

Real exports of goods and services increased 5.5 percent in the first quarter, compared with an increase of 6.5 percent in the fourth. Real imports of goods and services increased 2.5 percent, in contrast to a decrease of 1.4 percent.

Real federal government consumption expenditures and gross investment increased 4.6 percent in the first quarter, compared with an increase of 0.5 percent in the fourth. National defense increased 6.0 percent, in contrast to a decrease of 0.5 percent. Nondefense increased 1.8 percent, compared with an increase of 2.8 percent. Real state and local government consumption expenditures and gross investment increased 0.5 percent, compared with an increase of 2.8 percent.

The real change in private inventories added 0.81 percentage point to the first-quarter change in real GDP after subtracting 1.79 percentage points from the fourth-quarter change. Private businesses increased inventories $1.8 billion in the first quarter, following a decrease of $18.3 billion in the fourth and an increase of $30.6 billion in the third.

Real final sales of domestic product -- GDP less change in private inventories -- decreased 0.2 percent in the first quarter, in contrast to an increase of 2.4 percent in the fourth.


Gross domestic purchases

Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 0.4 percent in the first quarter, in contrast to a decrease of 0.4 percent in the fourth.

Disposition of personal income

Current-dollar personal income increased $129.6 billion (4.4 percent) in the first quarter, compared with an increase of $121.6 billion (4.2 percent) in the fourth. Personal current taxes increased $2.3 billion in the first quarter, compared with an increase of $18.2 billion in the fourth.

Disposable personal income increased $127.3 billion (5.0 percent) in the first quarter, compared with an increase of $103.4 billion (4.1 percent) in the fourth. Real disposable personal income increased 1.4 percent, compared with an increase of 0.1 percent.

Personal outlays increased $106.8 billion (4.2 percent) in the first quarter, compared with an increase of $148.0 billion (5.9 percent) in the fourth. Personal saving -- disposable personal income less personal outlays -- was $20.2 billion in the first quarter, in contrast to a negative $0.3 billion in the fourth. The personal saving rate -- saving as a percentage of disposable personal income -- was 0.2 percent in the first quarter; in the fourth quarter, the personal saving rate was 0.0 percent. Saving from current income may be near zero or negative when outlays are financed by borrowing (including borrowing financed through credit cards or home equity loans), by selling investments or other assets, or by using savings from previous periods.