US GDP qq 2nd reading on Q1
  • The advance reading was +1.1% vs +2.0% expected
  • Q4 final was +2.6% annualized


  • 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 .

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 than GDP.