US GDP Growth Revised Up to 1.2% In Q1


The US economy expanded an annualized 1.2 percent on quarter in the first three months of 2017, better than the advance estimate of 0.7 percent growth and beating market expectations of 0.9 percent, figures from the second estimate showed. It is the lowest growth rate in a year, better than the weakest first-quarter growth in three years initially estimated. Consumer spending and nonresidential fixed investment rose faster than anticipated and the drag from public spending and investment was lower than initially estimated. In contrast, private inventories decreased more.

Personal consumption expenditure (PCE) contributed 0.44 percentage points to growth (0.23 percent in the previous estimate) and rose 0.6 percent (0.3 percent in the previous estimate). Spending increased more than anticipated for services (0.8 percent from 0.4 percent in the previous estimate) and fell less for durable goods (-1.4 percent from -2.5 percent) while it rose less for nondurable goods (1.2 percent from 1.5 percent).

Fixed investment added 1.85 percentage points to growth (0.69 percentage points in the earlier estimate) and increased 11.9 percent, compared to a 4.3 percent expansion in the previous release. Investment rose more for housing (13.8 percent from 13.7 percent), structures (28.4 percent from 22.1 percent) and intellectual property products (6.7 percent from 2 percent) but eased for equipment (7.2 percent from 9.1 percent). 

Private inventories subtracted 1.07 percentage points from growth, more than 0.93 percent points in the first estimate. 

Meanwhile, exports went up 5.8 percent, unchanged form preliminary figures and imports rose at a slower 3.8 percent (4.1 percent), bringing the impact from trade higher to 0.13 percent (0.07 percent).

Government spending and investment subtrated 0.2 percentage points from growth (-0.3 percent in the previous release) and shrank 1.1 percent (-1.7 percent in the preliminary estimate).

BEA | Joana Taborda | joana.taborda@tradingeconomics.com
5/26/2017 1:03:30 PM