Friday, April 28, 2017

BEA: Real GDP increased at 0.7% Annualized Rate in Q1

by Bill McBride on 4/28/2017 08:34:00 AM

From the BEA: Gross Domestic Product: First Quarter 2017 (Advance Estimate)

Real gross domestic product (GDP) increased at an annual rate of 0.7 percent in the first quarter of 2017, according to the "advance" estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2016, real GDP increased 2.1 percent.
...
The increase in real GDP in the first quarter reflected positive contributions from nonresidential fixed investment, exports, residential fixed investment, and personal consumption expenditures (PCE), that were offset by negative contributions from private inventory investment, state and local government spending, and federal government spending. Imports, which are a subtraction in the calculation of GDP, increased

The deceleration in real GDP in the first quarter reflected a deceleration in PCE and downturns in private inventory investment and in state and local government spending that were partly offset by an upturn in exports and accelerations in both nonresidential and residential fixed investment.
emphasis added
The advance Q1 GDP report, with 0.7% annualized growth, was below expectations of a 1.1% increase.

Personal consumption expenditures (PCE) only increased at a 0.3% annualized rate in Q1, down from 3.5% in Q4.   Residential investment (RI) increased at a 13.7% pace. Equipment investment increased at a 9.1% annualized rate, and investment in non-residential structures decreased at a 22.1% pace.

I'll have more later ...