US Q1 final GDP -1.6% vs -1.5% expected

• The second reading was -1.5%
• Core PCE prices final +5.2% vs +5.1% expected
• PCE prices final 7.1% vs 7.0% 2nd reading
• Deflator 8.3% vs 8.1% expected
• Final sales -1.2% vs -0.5% expected
• Consumer spending final +1.8% vs +3.1% 2nd reading
• Inventory change +188.5 vs +149.6B 2nd reading

Percentage point contributions:

• Inventories cut 0.35 pp from GDP compared to -1.09 pp in 2nd reading
• Net trade cut 3.23 pp vs 3.23 pp in 2nd reading
• Personal consumption added 1.24 pp vs +2.09 pp in 2nd reading
• Gross private domestic investment +0.93 vs +0.10 pp in 2nd reading
• Government spending -0.51 vs -0.47 pp in 2nd reading

The negative revisions in spending and higher revisions in inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term both should have made for a larger negative revision overall. That was offset by upward revisions to inventories.

Overall, that inventory build will pull growth away from Q2 and beyond, so we're seeing a negative reaction in the broader markets. In the longer run, higher business investment could also translate into better productivity and output. The main beneficiary to revisions was in equipment investment.