COVID-19 Impact on the First-Quarter 2022 GDP Estimate: In the first quarter an increase in COVID-19 cases related to the Omicron variant resulted in continued restrictions and disruptions in the operations of establishments in some parts of the country. Government assistance payments in the form of forgivable loans to businesses grants to state and local governments and social benefits to households all decreased as provisions of several federal programs expired or tapered off. The full economic effects of the COVID-19 pandemic cannot be quantified in the GDP estimate for the first quarter

because the impacts are generally embedded in source data and cannot be separately identified.

 

Real gross domestic product (GDP) decreased at an annual rate of 1.5 percent in the first quarter of 2022 according to the "second" estimate released by the Bureau of Economic Analysis. In the fourth quarter real GDP increased 6.9 percent. The decrease in real GDP reflected decreases in private inventory investment exports federal government spending and state and local government spending while imports which are a subtraction in the calculation of GDP increased. Personal consumption expenditures (PCE) nonresidential fixed investment and residential fixed investment increased.

 

The decrease in private inventory investment was led by decreases in wholesale trade (mainly motor vehicles) as well as mining utilities and construction (notably utilities). Within exports widespread decreases in nondurable goods were partly offset by an increase in "other" business services (mainly financial services). The decrease in federal government spending primarily reflected a decrease in defense spending on intermediate goods and services. The increase in imports was led by increases in durable goods (notably nonfood and nonautomotive consumer goods). The increase in PCE reflected widespread increases in services (led by housing and utilities). Within goods an increase in durable goods (led by motor vehicles and parts) was offset by a decrease in nondurable goods (led by gasoline and other energy goods). The increase in nonresidential fixed investment reflected increases in equipment and intellectual property products.

 

Updates to GDP: The decrease in first-quarter real GDP was revised down 0.1 percentage point from the advance estimate primarily reflecting downward revisions to private inventory investment and residential fixed investment that were mostly offset by upward revisions to consumer spending and exports. Imports were revised up.