Updated: 30-May-18 09:25 ET
| Q1 GDP-Adv. |
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| Updated: 30-May-18 09:25 ET |
Highlights
- The second estimate for Q1 GDP contained a slight downward revision to 2.2% (Briefing.com consensus 2.3%) from 2.3%.
- The GDP Price Deflator was also revised down a tad to 1.9% (Briefing.com consensus 2.0%) from 2.0%.
Key Factors
- Personal consumption expenditures growth was revised to 1.0% from 1.1%
- Real final sales of domestic product, which excludes the change in inventories, was revised slightly higher to 2.0% from 1.9%
- Nonresidential fixed investment growth was revised up to 9.2% from 6.1% in the advance estimate
- Private inventory investment was revised lower, such that the change in private inventories contributed only 0.13 percentage points to GDP growth in the second estimate versus 0.43 percentage points in the advance estimate
Big Picture
- The key takeaway from the report is that it was a rerun of a bad episode of consumer spending in the first quarter. Therefore, it won't have any market impact since the "new" news today on Q1 GDP is old news.
| Category | Q1 | Q4 | Q3 | Q2 | Q1 |
| GDP | 2.2% | 2.9% | 3.2% | 3.1% | 1.2% |
| Inventories (change) | $20.2B | $15.6B | $38.5B | $5.5B | $1.2B |
| Final Sales | 2.0% | 3.4% | 2.4% | 2.9% | 2.7% |
| PCE | 1.0% | 4.0% | 2.2% | 3.3% | 1.9% |
| Nonresidential Inv. | 9.2% | 6.8% | 4.7% | 6.7% | 7.1% |
| Structures | 14.2% | 6.3% | -7.0% | 7.0% | 14.8% |
| Equipment | 5.5% | 11.5% | 10.8% | 8.8% | 4.4% |
| Intellectual Property | 10.9% | 0.8% | 5.2% | 3.7% | 5.8% |
| Residential Inv. | -2.0% | 12.8% | -4.7% | -7.3% | 11.1% |
| Net Exports | -$650.9B | -$653.9B | -$597.5B | -$613.6B | -$622.2B |
| Export | 4.2% | 7.0% | 2.1% | 3.5% | 7.3% |
| Imports | 2.8% | 14.1% | -0.7% | 1.5% | 4.3% |
| Government | 1.1% | 3.0% | 0.7% | -0.2% | -0.6% |
| GDP Price Index | 1.9% | 2.3% | 2.1% | 1.0% | 2.0% |
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