• Q4 final was 6.9% annualized
  • Consumer spending +2.7% vs +2.5% prior
  • Consumer spending on durables -4.1% vs +2.5% in Q4
  • GDP deflator +8.0% vs +7.3% expected
  • Core PCE +5.2% vs +5.4% expected
  • GDP final sales -0.6% vs +1.5% in Q4
  • Nominal GDP vs up 14.3% annualized in Q4
  • Business investment +9.2% vs +2.9% in Q4
  • Home investment +2.1% vs +2.2% in Q4
  • GDP ex motor vehicles -1.3%
  • Full report

Details:

  • Inventories cut 0.84 pp from growth
  • Net trade cut 3.2 pp from growth
  • Home investment cut 0.03 pp from GDP
  • Personal consumption added 1.83 pp GDP
  • Gross private domestic investment added 0.43 pp to GDP
  • Government spending cut 0.48 pp from GDP

The US had the strongest annual growth in 2021 since 1984 but trade and inventories weighed in the first quarter. The 8.0% inflation number is certainly a problem.