The third look at US first quarter GDP
- The second reading was 1.2%
- Q4 was 2.1%
- Personal consumption 1.1% vs 0.6% expected
- Consumption in the second reading was +0.6%
- GDP price index 1.9% vs 2.2% exp
- Core PCE q/q 2.0% vs 2.1% exp
The big story is the large upward revision in consumption. Never underestimate the spending power of the US consumer.
In terms of revisions, the first reading of Q1 GDP was +0.7% then it was revised to 1.2%, and now this. Personal consumption was +0.3% in the first reading.
Details (comparisons to second reading)
- Business investment +10.4% vs +11.4%
- Investment in equipment +7.8% vs +7.2% prior
- Home investment +13.0% vs +13.8% prior
- Business inventory change +$2.6B vs +$4.3B prior
- Inventory change cuts 1.11 percentage points from GDP
- Corporate profits after tax -2.7% vs -2.5% prior