US Q1 2023 GDP (second reading) +1.3% vs +1.1% expected

• The advance reading was +1.1% vs +2.0% expected
• Q4 final was +2.6% annualized

Details:

• Consumer spending +3.8% vs +3.7% advance
• GDP final sales +3.4% vs +3.4% expected
• PCE prices 4.2% vs 4.2% advance
• Core PCE prices 5.0% vs 4.9% expected (4.9% advance)
• GDP deflator 4.1% vs 4.0% expected

The consumer was stronger than anticipated, leading to a higher revision to Q1 GDP GDP Gross Domestic Product (GDP) is the monetary value of all the goods and services produced within a country's borders in a specific period of time, typically a year. It is used to measure the economic activity and growth of a country. Periods shorter than a year are often presented in an annualized or year-over-year format.There are three ways to calculate GDP:The expenditure approach: GDP is calculated by adding up all the spending on goods and services within a country. This includes consumer s Gross Domestic Product (GDP) is the monetary value of all the goods and services produced within a country's borders in a specific period of time, typically a year. It is used to measure the economic activity and growth of a country. Periods shorter than a year are often presented in an annualized or year-over-year format.There are three ways to calculate GDP:The expenditure approach: GDP is calculated by adding up all the spending on goods and services within a country. This includes consumer s Read this Term.

Percentage point changes

• Net trade was flat at 0.00 pp vs adding 0.11 pp to GDP in advance report and adding 0.46 pp in Q4
• Inventories cut 2.10 pp vs 2.26 pp in advance report and adding 1.46 pp in Q4
• Govt +0.89 pp vs +0.81 pp in advance vs +0.63 pp in Q4

The changes to inventories and gov't spending go a long way towards explaining the GDP upgrade and they're not particularly relevant to the underlying economy. The dollar is stronger in the aftermath but I think that's more about initial jobless claims Jobless Claims Jobless claims are a weekly statistic reported in the United States that represents a key barometer for domestic employment. As one of the most closely watched US indicators, jobless claims carry a lot of weight in financial markets, namely forex and the stock market.Jobless claims are reported on a weekly basis by the Department of Labor. While painting a picture of the overall health of the economy, jobless claims can be broken down into two types.This includes initial jobless claims or person Jobless claims are a weekly statistic reported in the United States that represents a key barometer for domestic employment. As one of the most closely watched US indicators, jobless claims carry a lot of weight in financial markets, namely forex and the stock market.Jobless claims are reported on a weekly basis by the Department of Labor. While painting a picture of the overall health of the economy, jobless claims can be broken down into two types.This includes initial jobless claims or person Read this Term than GDP.