–Inventories, PCE, Fixed Investment All Revised Lower
By Kevin Kastner
WASHINGTON (MNI) – In contrast to the usually bland second
revisions for US GDP data, the overall GDP for the second quarter of
2012 was revised lower to a 1.3% annual rate on smaller increases in
inventories, consumption, residential fixed investment, and
nonresidential fixed investment, as well as a wider net export gap, data
released by the Commerce Department Friday morning showed.
Analysts in an MNI survey had expected GDP to be unrevised, holding
at the previously reported 1.7% increase in the second estimate.
The only upward revision to the key GDP inputs was to government
spending was still declined 0.7% compared with the 0.9% decline reported
in the second estimate for the quarter.
Inventory investment posted the largest downward revision, now
reported at a $41.4 billion rise for the second quarter compared with
the $49.9 billion increase in the second estimate. The contribution for
inventory investment now stands at -0.46, compared with -0.23 in the
second estimate.
Farm inventories are now down $7.9 billion in the second quarter, a
sharp downward revision from the $2.2 billion decline previous report,
with additional information from drought-affected areas likely to have
influenced the data. The contribution from the farm-affected areas is
now -0.17, compared with the previously reported 0.2 positive
contribution.
PCE was revised down to a 1.5% rate of growth from the 1.7% rise in
the second estimate. Durables and service PCE were revised lower, while
nondurables PCE was revised up slightly.
The net export gap was revised wider to $407.4 billion from $404.7
billion in the second estimate.
Both residential and nonresidential fixed investment were revised
to smaller gains.
The chain price index was unrevised at a 1.6% rate of growth, while
the other price measures were revised only modestly.
** MNI Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
