WASHINGTON — The nation's gross domestic product grew 2.8% during the first quarter, down from the initial estimate of 3.3%, the Commerce Department reported today.
The revision to the figure–which is the total output of goods and services –was a result of fewer consumer purchases than the department originally estimated.
The department attributes the GDP growth to increases in exports and accelerated consumer and government spending. Some of the consumer spending was fueled by the government's economic stimulus checks, most of which were sent out by the government during the second quarter.
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Exports increased 12.3% in the second quarter, up from a 5.1% rise during the first quarter. Imports fell 7.3% during the second quarter, compared with a 0.3% drop in the first quarter.
Among businesses, there was decreased spending on inventory, equipment and software.
During the first three months of 2008, GDP grew 0.9%
The department also reported that corporate profits fell $60.2 billion during the second quarter, compared with a $17.6 billion drop during the first quarter.
Domestic profits of financial corporations fell $31 billion during the second quarter, compared with a $37.3 billion increase during the first three months of 2008. Domestic profits of non-financial companies were down $4.2 billion during the second quarter, an improvement over the $32 billion decrease during the first quarter.
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