Details:
- Consumer spending 3.0% vs +2.8% advance
- Consumer spending on durables +3.2% vs +4.6% advance
- GDP final sales +3.5% vs +3.2% advance
- GDP deflator 1.7% vs +1.5% advance
- Core PCE +2.1% vs +2.0% advance (+2.0% prior)
- Business investment +0.9% vs +2.1% advance
- Full report
Some of the details in the report like business investment and consumer spending on durables point to a weaker environment than believed.
Percentage point changes:
- Net trade +0.32 pp vs +0.43 pp advance
- Inventories +0.27 pp vs +0.07 pp advance
- Govt +0.73 pp vs +0.56 pp advance
The picture in the GDP report is of weaker business investment and consumer spending with a stronger-than-believed contribution from government spending and inventory building. Those are downside risks for 2024 growth and that's why the US dollar softened on the report.
