U.S. GDP Fell 0.7% in Q1 Amid Weaker Goods Exports, Business Investment - 2nd Est.

(Updated - May 29, 2015 8:42 AM EDT)

Q1 GDP -0.7% vs -0.9% Expected

UPDATE - More from the Bureau of Economic Analysis:

Real gross domestic product -- the value of the production of goods and services in the United States, adjusted for price changes -- decreased at an annual rate of 0.7 percent in the first quarter of 2015, according to the "second" estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 2.2 percent.

The GDP estimate released today is based on more complete source data than were available for the "advance" estimate issued last month. In the advance estimate, real GDP increased 0.2 percent. With the second estimate for the first quarter, imports increased more and private inventory investment increased less than previously estimated.

The decrease in real GDP in the first quarter primarily reflected negative contributions from exports, nonresidential fixed investment, and state and local government spending that were partly offset by positive contributions from personal consumption expenditures (PCE), private inventory investment, and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.

Corporate profits decreased 5.9 percent at a quarterly rate in the first quarter after decreasing 1.4 percent in the fourth quarter of 2014.

• Profits of domestic nonfinancial corporations decreased 7.7 percent after increasing 1.4 percent.
• Profits of domestic financial corporations decreased 0.6 percent after decreasing 2.7 percent.
• Profits from the rest of the world decreased 6.0 percent after decreasing 8.8 percent.

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