MNI BRIEF: ISM Expects Sluggish Growth, Sticky Services Prices

MNI BRIEF: German Infl In Line With EA, Growth Lags - GCEE

MNI BRIEF: Focus Support For Cutting-Edge Tech - Ministry

MNI BRIEF: EU Won't Necessarily Follow US on Tariffs-Gentiloni

MNI China Daily Summary: Wednesday, May 15

MNI: PBOC Conducts CNY125 Bln 1Y MLF Weds; Rates Unchanged

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

EZ/UK Bond Supply Calendar: Spain, France Auction on Thursday

US EIA: CRUDE OIL STOCKS EX SPR -2.51M TO 457.0M MAY 10 WK

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Real GDP and Consumer Spending Misses But Firmer Underlying Details

US DATA
Metals bulletEM BulletHomepagemarkets-real-timeCommoditiesEmerging Market NewsEnergy BulletsBulletMarketsFixed Income BulletsForeign Exchange Bullets
  • Real GDP was softer than expected in Q1 at 1.6% (cons 2.5) after 3.4% in Q4 (no revisions in this advance release).
  • Relative to expectations, personal consumption disappointed at 2.5% (cons 3.0) whilst net exports were a larger drag than the Atlanta Fed’s GDPNow had envisaged (-0.86pps vs -0.5pps) along with the contribution from inventories (-0.35pps vs -0.1pps).
  • It meant the contribution from final sales to domestic purchases was still strong though, adding 2.8pps after two quarters averaging 3.6pps.
  • Within personal consumption, goods spending was extremely weak at -0.4% after +3.0% considering the strength in the retail sales control group, but services helped offset with a strong +4.0% after +3.4% for its strongest quarter since 3Q21.
  • The strength in domestic demand was further evident by imports increasing 7.2% on the quarter (goods 6.8%, services 9.0%).
134 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Real GDP was softer than expected in Q1 at 1.6% (cons 2.5) after 3.4% in Q4 (no revisions in this advance release).
  • Relative to expectations, personal consumption disappointed at 2.5% (cons 3.0) whilst net exports were a larger drag than the Atlanta Fed’s GDPNow had envisaged (-0.86pps vs -0.5pps) along with the contribution from inventories (-0.35pps vs -0.1pps).
  • It meant the contribution from final sales to domestic purchases was still strong though, adding 2.8pps after two quarters averaging 3.6pps.
  • Within personal consumption, goods spending was extremely weak at -0.4% after +3.0% considering the strength in the retail sales control group, but services helped offset with a strong +4.0% after +3.4% for its strongest quarter since 3Q21.
  • The strength in domestic demand was further evident by imports increasing 7.2% on the quarter (goods 6.8%, services 9.0%).