Friday, May 26, 2017

Q1 GDP Revised up to 1.2% Annual Rate

by Bill McBride on 5/26/2017 09:48:00 AM

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

Real gross domestic product (GDP) increased at an annual rate of 1.2 percent in the first quarter of 2017, according to the "second" estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 2.1 percent.

The GDP estimate released today is based on more complete source data than were available for the "advance" estimate issued last month. In the advance estimate, the increase in real GDP was 0.7 percent. With this second estimate for the first quarter, the general picture of economic growth remains the same; increases in nonresidential fixed investment and in personal consumption expenditures (PCE) were larger and the decrease in state and local government spending was smaller than previously estimated. These revisions were partly offset by a larger decrease in private inventory investment ...
emphasis added
Here is a Comparison of Second and Advance Estimates. PCE growth was revised up from 0.3% to 0.6%. (weak PCE). Residential investment was revised up slightly from 13.7% to +13.8%. This was above the consensus forecast.