Statement on the Advance Estimate of GDP for the First Quarter of 2016

WASHINGTON, DC – Jason Furman, Chairman of the Council of Economic Advisers, issued the following statement today on the advance estimate of GDP for the first quarter of 2016.

Summary: Real GDP rose 0.5 percent at an annual rate in the first quarter according to the advance estimate, even as job growth remains strong. 

The economy grew 0.5 percent at an annual rate in the first quarter of 2016, a slower pace than last quarter. Strong growth in residential investment boosted real GDP growth, but weakness in business investment and net exports—exacerbated by weak foreign demand and low oil prices—weighed on growth. Consumer spending grew at a moderate pace in the first quarter. Overall, the most stable and persistent components of output — consumption and fixed investment—rose 2.6 percent over the past four quarters. Nevertheless, labor market data remain robust, with continuing private-sector job creation, increasing labor force participation, and historically low levels of Unemployment Insurance claims. Today’s report underscores that there is more work to do, and the President will continue to call on Congress to support policies that will boost our long-run growth and living standards, including policies to support innovation and investments in infrastructure and job training and to promote greater competition across the economy, as well as high-standards free trade agreements like the Trans-Pacific Partnership.

You can view the complete statement here. 

Source: The White House, Office of the Press Secretary