According to the second estimate of the U.S. Bureau of Economic Analysis, real GDP in the U.S. expanded by 3.1% in the first quarter of 2019 compared to 3.2% announced in the first estimate and matched the market expectation.
The initial market reaction to this reading was relatively muted with the US Dollar Index staying flat on the day above 98.
Key takeaways from the press release
- Today’s estimate reflects downward revisions to nonresidential fixed investment and private inventory investment and upward revisions to exports and personal consumption expenditures (PCE).
- Imports, which are a subtraction in the calculation of GDP, were revised up; the general picture of economic growth remains the same.
- Current-dollar GDP increased 3.6 percent, or $183.7 billion, in the first quarter to a level of $21.05 trillion.
- The price index for gross domestic purchases increased 0.7 percent in the first quarter, compared with an increase of 1.7 percent in the fourth quarter.
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