US GDP Growth Revised Up to 1.4% In Q1


The US economy expanded an annualized 1.4 percent on quarter in the first three months of 2017, better than 1.2 percent in the second estimate, as consumer spending and exports increased more than previously anticipated. On the other hand, non-residential investment was revised lower and the drag from inventories was higher than initially estimated.

Personal consumption expenditure (PCE) contributed 0.75 percentage points to growth (0.44 percent in the previous estimate) and rose 1.1 percent (0.6 percent in the previous estimate). Spending increased more than anticipated for services (1.4 percent from 0.8 percent in the previous estimate) and nondurable goods (1.6 percent from 1.2 percent) but fell more for durable goods (-1.6 percent from –1.4 percent).  

Fixed investment added 1.71 percentage points to growth (1.85 percentage points in the earlier estimate) and increased 11 percent, compared to an 11.9 percent expansion in the previous release. Investment rose less for housing (13 percent from 13.8 percent), structures (22.6 percent from 28.4 percent) and intellectual property products (6.4 percent from 6.7 percent) but increased faster for equipment (7.8 percent from 7.2 percent). 

Private inventories subtracted 1.11 percentage points from growth, more than 1.07 percent points in the second estimate. 

Meanwhile, exports went up 7 percent, higher than 5.8 percent in the second estimate and imports rose 4 percent, above 3.8 percent earlier estimated, bringing the impact from trade higher to 0.23 percent (0.13 percent).

Government spending and investment subtracted 0.16 percentage points from growth (-0.2 percent in the previous release) and shrank 0.9 percent (-1.1 percent in the second estimate).

BEA | Joana Taborda | joana.taborda@tradingeconomics.com
6/29/2017 12:52:28 PM