US GDP Growth Revised Up to 0.8% in Q1


The US economy expanded an annualized 0.8 percent on quarter in the first three months of 2016, better than a 0.5 percent increase initially estimated, according to the second estimate released by the Bureau of Economic Analysis. Consumption continued to boost growth as spending on home building increased more than expected and the drag from net trade and inventories was smaller. In contrast, business investment fell faster than anticipated.

Personal consumption expenditure (PCE) contributed 1.29 percentage points to growth (1.27 percent in the advance estimate) and rose 1.9 percent (1.9 percent in the advance estimate). Spending on durable goods (-1.2 percent from -1.6 percent in the advance estimate) fell less than expected, consumption of nondurable goods (1.3 percent from 1 percent in the advance estimate) rose more whose the one for services increased less than expected (2.6 percent from 2.7 percent). 

Fixed investment subtracted 0.25 percentage points to growth (-0.27 percent in the advance estimate) and shrank 1.5 percent (-1.6 percent in the advance estimate). Nonresidential investment declined faster by 6.2 percent (-5.9 percent in the advance estimate) and investment in intellectual property products fell 0.1 percent (compared to a 1.7 percent growth in the advance estimate) while structures declined less (-8.9 percent from -10.7 percent in the advance estimate) and residential investment increased 17.1 percent, higher than 14.8 percent in the advance estimate. 

Private inventories subtracted 0.2 percentage points from the growth, compared to a 0.33 percentage points decrease earlier estimated. Businesses accumulated $69.6 billion worth of inventory, compared to $60.9 billion earlier reported. 

Meanwhile, exports shrank at a slower 2 percent (-2.6 percent in the advance estimate) while imports contracted 0.2 percent, compared to a 0.2 percent increase earlier reported and bringing the impact from trade to -0.21 percent from -0.34 percentage points earlier reported.

Government spending and investment added 0.2 percentage points to growth, the same as in the advance estimate.


US GDP Growth Revised Up to 0.8% in Q1


BEA | Joana Taborda | joana.taborda@tradingeconomics.com
5/27/2016 2:05:41 PM