Advance Q1 GDP above-expected +3.2% on net..>

US DATA: Advance Q1 GDP above-expected +3.2% on net exports, inv, govt

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- First quarter GDP surprise +3.2% in advance estimate vs +2.3% BBG and 

+2.0% MNI. GDP was +2.2% in the previous quarter. 

- The acceleration in GDP growth was due to stronger contributions from 

both net exports and inventories and a rebound in state and local 

government spending, while PCE growth, residential investment and 

nonresidential investment growth slowed, leaving domestic consumption a 

bit softer. 

- Final sales to domestic purchasers +1.4% vs +2.1% in Q4.

- The closely watched core PCE price index +1.3% (slowest since Q2 

2017) after +1.8% in the previous quarter. The y/y rate slipped to +1.7% 

from 1.9% in the fourth quarter, slowest in a year.

- The GDP price index softer +0.9% after +1.7% in the previous quarter.

- Real final sales of domestic product were +2.5%, faster than +2.1% in 

the previous quarter even when the inventory gain was removed.