The second look at first quarter 2017 US GDP
- The first reading was +0.7% annualized
- Personal consumption +0.6% vs +0.4% exp
- Initial reading on consumption +0.3%
- GDP ex-vehicles +1.7% vs +1.2% prior
- GDP price index +2.2% vs +2.3% expected
- GDP price index initially at +2.3%
- Core PCE +1.7% vs +1.7% y/y initially
- Deflator +2.2% vs +2.3% initially
Details:
- Inventories cut 1.07 pp from GDP
- Inventories +4.3B vs +10.3B initially
- Exports +5.8% vs +5.8% initially
- Imports +3.8% vs +4.1% initially
- Home investment +13.8% vs +13.7% initially
- Business investment in structures +28.4% vs +22.1% initially
- Consumer spending +0.6% vs +0.3% initially
- Spending on durables -1.4% vs -2.5% initially
- Business investment +11.4% vs +9.4% initially
The business investment and consumer revisions are good news but in the durable goods report, the core orders are soft, so that raises fresh questions on business investment.