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The annualized percent change in real GDP for the first quarter of 2014 was revised down from a 0.1 percent increase to a 1.0 percent decline, based on the second estimate. The revision to GDP growth in the first quarter primarily reflects a downward revision to inventory investment, while most other categories had slight positive revisions. The change in private inventories, which was originally estimated to have subtracted 0.6 percentage points from GDP growth in the first quarter is now estimated to have subtracted 1.6 percentage points.
Personal consumption expenditures were revised up slightly, from a 3.0 percent increase to a 3.1 percent increase. Consumption is now estimated to have contributed 2.1 percentage points to GDP growth for the quarter. Business fixed investment, which was originally estimated to have declined 2.1 percent, is now estimated to have declined 1.6 percent, while residential investment, which was originally estimated to have declined 5.7 percent, is now estimated to have declined 5.0 percent. The declines in business fixed investment and residential investment each subtracted 0.2 percentage points from GDP growth in the first quarter.
Both exports and imports were revised up in the second estimate of first quarter GDP. Exports are now estimated to have declined 6.0 percent in the first quarter, compared to an original estimate of 7.6 percent, while imports, which were originally estimated to have declined 1.4 percent, are now estimated to have increased 0.7 percent. The net result was a downward revision to the contribution of net exports to GDP growth from −0.8 percentage points to −1.0 percentage point. Additionally, government spending was revised down slightly, from a 0.5 percent decline to a 0.8 percent decline, and contributed −0.2 percentage points to first quarter GDP growth.