US Q1 GDP Growth Revised Down to 3.1%


The US economy advanced an annualized 3.1 percent in the first quarter of 2019, slightly below earlier figures of a 3.2 percent expansion and in line with market expectations, the second estimate showed. It follows a 2.2 percent growth in the previous three-month period.

Personal consumption expenditure (PCE) contributed 0.9 percentage points to growth (0.82 percentage points in the advance estimate) and increased 1.3 percent (1.2 percent in the advance estimate). Spending rose more than expected for services (2.1 percent compared to 2 percent) and fell less than in the advance estimate for durable goods (-4.6 percent compared to -5.3 percent).

Fixed investment made a positive contribution of 0.18 percentage points compared to 0.27 percentage points in the advance estimate and went up 1.0 percent (1.5 percent in the advance estimate). Residential investment dropped more than expected (-3.5 percent compared to -2.8 percent) and investment for equipment fell (-1 percent compared to 0.2 percent). Also, investment rose less for intellectual property products (7.2 percent compared to 8.6 percent). Meanwhile, investment in instructures rose 1.7 percent compared to a 0.8 percent fall in the advance estimate.

The contribution from private inventories turned less positive than previously expected (0.60 percentage points compared to 0.65 percentage points in the advance estimate).

Exports jumped 4.8 percent (3.7 percent in the advance estimate), driven by sales of both goods (6.3 percent) and services (2 percent). On the other hand, imports decreased 2.5 percent (-3.7 percent in the advance estimate), as purchases of goods plunged (-3.1 percent) while imports of services went up (0.3 percent). As a result, the impact from trade was 0.96 percent, compared to 1.03 percent in the advance estimate.

Government spending and investment added 0.42 percentage points to growth, above 0.41 percentage points in the previous release. It went up 2.5 percent, higher than 2.4 percent in the advance estimate.

US Q1 GDP Growth Revised Down to 3.1%


BEA | Stefanie Moya | stefanie.moya@tradingeconomics.com
5/30/2019 1:17:24 PM