Analysts at Nomura noted the details within the Q1 GDP, third estimate.
Key Quotes:
“The final estimate of Q1 real GDP came in at 2.0% q-o-q saar, below expectations (Nomura: 2.3%, Consensus: 2.0%).”
“The downside surprise was due to a downward revision to net exports. Imports growth was revised up, while exports growth was revised down”
“Personal consumption expenditure (PCE) rose only modestly by 0.9% in Q1 (revised down from 1.0%), reaffirming relatively soft growth in PCE.”
“The downward revision to PCE did not come as surprise as Q1 Quarterly Services Survey indicated weak spending on services.”
“Elsewhere, private inventory investment was revised down modestly, reflecting incoming data.”
“Private inventory investment and residential fixed investment offset strong increases in nonresidential fixed investment.”
“Overall, Q1 data indicate steady growth albeit at a slower pace. Incoming data on Q2, on the other hand, point to a solid pick-up from Q2.”
Share
