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After sizzling ever higher for the first two readings of Q1 GDP, the 2nd and final (for now) revision of Q1 GDP came in a hair weaker than expected, dropping from 3.2% to 3.1% (3.08% to be precise), below the 3.2% consensus estimate, if still well above the 2.2% annualized GDP print in Q4 2018.
The unrevised GDP growth rate reflected upward revisions to business investment, exports, and state and local government spending. These were offset by downward revisions to consumer spending and inventory investment and an upward revision to imports.
Key - Driver - Revision - Drop - Consumption/spending
The key driver behind the downward revision was mostly the sharp drop in personal consumption/spending, which was revised sharply lower from 0.90% to 0.62%, and far below the 1.7% print in Q4. On an annualized basis, personal consumption dropped to 0.9% from 1.3% as of the 2nd revision, and below the 1.3% expected.
This drop however was offset by a rebound in Fixed Investment, which was revised higher from 0.18% in the prior revision to 0.53%. Nonresidential fixed investment, or spending on equipment, structures and intellectual property rose 4.4% annualized in 1Q after rising 5.4% prior quarter.
Components - GDP
The other components of GDP were generally in...
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