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Consumption Revised Lower, Further Limitation From Savings Ratio Ahead?

US DATA
  • A broadly as expected real GDP print of -1.6% Q/Q in the third release for Q1 masked a significant downward revision in consumption growth, from 3.1% to 1.8%, partly offset by a smaller than first thought drag from inventories.
  • The revision left consumption growing at a similar pace to the latest estimate from Atlanta Fed’s GDPNow for Q2.
  • Latest monthly data showed the personal savings ratio continuing to fall in April to 4.4% (May released tomorrow), touching the lowest since 2008 and potentially further limiting consumption strength if it struggles to fall much more.


Historical personal savings ratio (% disposable income)Source: Bloomberg

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