Final domestic demand was down 0.1 percent in the first quarter, as lower business gross fixed capital formation offset increased household final consumption expenditure. Government final consumption expenditure was 0.1 percent lower.
Household final consumption expenditure rose 0.3 percent, the smallest gain in four quarters. Increased spending on non-durable goods (+1.0 percent) more than offset decreased spending on durable and semi-durable goods. Outlays on services were up 0.2 percent.
Business gross fixed capital formation was down 0.9 percent, the third decrease in five quarters. Business gross fixed capital formation in residential structures declined 1.6 percent, with new home construction (-1.5 percent) and ownership transfer costs (-6.4 percent) both down. Business investment outlays on plant and equipment decreased 0.5 percent.
Businesses investment in inventories was $16.4 billion in the first quarter, down from $16.8 billion in the previous quarter, primarily as a result of lower investment in farm inventories.
Exports fell 0.6 percent despite a 3.8 percent increase in exports of energy products. Exports of goods were 0.8 percent lower while those of services rose 0.6 percent. Imports of goods and services fell 1.9 percent.