GDP revisions

  • Initial reading was +2.6%
  • Q1 growth was +1.2%
  • Personal consumption 3.3% vs 3.0% expected
  • Prior personal consumption +2.8%
  • GDP price index +1.0% vs +1.0% exp
  • Core PCE +0.9% vs +0.9%

So far in 2017, annualized GDP is running at +2.1%.

Details:

  • Home investment -6.5% vs -6.8% prior
  • Business investment in structures +6.2% vs +4.9% prior
  • Exports +3.7% vs +4.1% prior
  • Imports +1.6% vs +2.1%
  • Inventory change -$1.8B vs -$0.3B
  • Inventories add 0.02 percentage points to GDP
  • Corporate profits after tax +0.8% vs -2.6% prior

The slowdown in trade is negative news but overall the details are good news.

The euro fell below 1.1900 on the data as the US dollar continues the momentum form yesterday. if Congress could raise the debt ceiling and reform taxes, the outlook would be