Wednesday, May 30, 2018

Q1 GDP Revised down to 2.2% Annual Rate

by Bill McBride on 5/30/2018 08:35:00 AM

From the BEA: National Income and Product Accounts Gross Domestic Product: First Quarter 2018 (Second Estimate)

Real gross domestic product (GDP) increased at an annual rate of 2.2 percent in the first quarter of 2018, according to the "second" estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2017, real GDP increased 2.9 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 2.3 percent. With this second estimate for the first quarter, the general picture of economic growth remains the same; downward revisions to private inventory investment, residential fixed investment, and exports were partly offset by an upward revision to nonresidential fixed investment.
emphasis added
Here is a Comparison of Second and Advance Estimates. PCE growth was revised down from 1.1% to 1.0%. Residential investment was revised down from no change to -2.0%. Most revisions were small. This was slightly below the consensus forecast.