US Q1 GDP (second reading) +6.4% vs +6.5% expected

Highlights of the second look at Q1 GDP

US GDP long view
  • First reading was +6.4%
  • Final Q4 reading was +4.3%
  • Personal consumption +11.3% vs +11.0% expected
  • GDP price index +4.3% vs +4.1% expected
  • Core PCE +2.5% vs +2.3% expected
  • Full report

Details:

  • Ex motor vehicles +6.5% vs +6.6% prelim
  • Final sales +9.4% vs +9.2% prelim
  • Inventories cut 2.78 pp from GDP
  • Net exports cut 1.2 pp from GDP
  • Govt spending adds 1.02 pp to GDP
  • Business investment +10.8% vs +9.9% prelim
  • Business investment in equipment +13.4% vs +16.7% prelim
  • Exports -2.9% vs -1.1% prelim
  • Imports +6.7% vs +5.7% prelim
  • Home investment +12.7% vs +10.8% prelim

With the drop in inventories and the poor performance of trade possibly reversing later in the year, there will be a consistent tailwind for GDP for a few quarters.

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