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 1.6 percent in the first quarter of 2022 according to the ""third"" estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2021 real GDP increased 6.9 percent. The decrease in real GDP reflected decreases in exports federal government spending private inventory investment and state and local government spending while imports which are a subtraction in the calculation of GDP increased. Nonresidential fixed investment PCE and residential fixed investment increased.

 

The decrease in exports reflected widespread decreases in nondurable goods. The decrease in federal government spending primarily reflected a decrease in defense spending on intermediate goods and services. 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). The increase in imports was led by an increase in goods (notably nonfood and nonautomotive consumer goods). The increase in nonresidential fixed investment reflected increases in equipment and intellectual

property products. The increase in PCE reflected an increase in spending on services (led by housing and utilities and ""other"" services) that was partly offset by a decrease in spending on goods. Within goods widespread decreases in nondurable goods (led by groceries as well as gasoline and other energy goods) were largely offset by an increase in durable goods (led by motor vehicles and parts).

 

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