1Q GDP rev down to +2.0% SAAR from +2.2% in.>

US DATA: 1Q GDP rev down to +2.0% SAAR from +2.2% in the second estimate, 

compared with expectations for no revision, with downward revisions to 

PCE and private inventories, a wider trade gap, and an upward adjustment 

to headline price index the key factors. Analysts expect stronger 2Q GDP.

- The PCE measure was revised lower on a downward adjustment to services 

that was offset by an upward adjustment to goods. The savings rate was 

revised up to 3.3% from 3.1% in the second estimate, still up solidly 

from 2.7% in 4Q. 

- The overall GDP price index was revised up to +2.2% from +1.9%, but 

the closely watched core PCE was unrevised at +2.3%, keeping the y/y 

rate at +1.6%, up modestly from +1.5% in 4Q. 

- Real final sales of domestic product were unrevised at +2.0% in second 

estimate, while sales to domestic purchasers were revised up to +2.0% 

from +1.9%.

- GDI was revised up sharply to +3.6% from +2.8% in the second estimate, 

still up from +1.0% in 4Q. The GDP/GDI average was revised up to +2.8% 

from +2.5% in the previous estimate, standing above the +2.0% 4Q rate.