REPEAT: MNI DATA ANALYSIS: US 1Q GDP Revised Down To +2.2%>

Repeats Story Initially Transmitted at 12:30 GMT May 30/08:30 EST May 30

--Most Components Revised Modestly Lower, Inventories Cut Sharply

--Nonresidential Fixed Investment Revised Up To Provide Some Offset

--Core PCE Price Index Revised Down To +2.3%; Y/Y Now +1.6%

By Kevin Kastner and Holly Stokes

     WASHINGTON (MNI) - First quarter GDP growth was revised down 

slightly to a 2.2% annual rate from the 2.3% pace in the advance 

estimate, compared with expectations for no revision, data released 

Wednesday by the Bureau of Economic Analysis showed. 

     A large downward revision to inventories growth was the key factor, 

supplemented by small downward revisions to PCE, residential fixed 

investment, and government spending and a wider trade gap. Providing 

some offset was a large upward revision to nonresidential fixed 

investment. 

--OVERALL GROWTH SAME, FINAL SALES UP

     Overall, the data suggest very little change in the overall growth 

picture, but the mix of revisions resulted in an upward adjustment to 

final sales. Likewise, the price picture was a little softer than the 

advance estimate, but not materially. 

     Inventory investment was revised down to a $20.2 billion gain for 

the quarter from $33.1 billion in the advance estimate. The net export 

gap now stands at $650.9 billion, slightly larger than $645.9 billion 

gap in the advance estimate. 

     Within consumption, which was revised down slightly to a 1.0% pace 

for the quarter from the 1.1% advance estimate, there was an upward 

revision to goods PCE, offset by a downward adjustment to services PCE. 

     The personal savings rate was unrevised at a 3.1% level and was 

still up from 2.6% in the previous quarter. 

     Residential fixed investment was revised down to 2.0% rate of 

decline from a flat reading in the advance estimate. 

     Government spending was revised down to a 1.1% gain, compared with 

a 1.2% rise in the advance estimate. 

     Providing some offset, nonresidential fixed investment was revised 

up to a 9.2% pace from the 6.1% gain in the advance estimate, with 

structures, equipment, and intellectual equipment all revised higher. 

     As a result of the mix of revisions, real final sales of domestic 

product were revised up to a 2.0% gain from the 1.9% increase in the 

advance estimate. Real final sales to domestic purchasers was revised 

up to a 1.9% pace from 1.6% rise in the advance estimate. 

--PRICE MEASURES REVISED LOWER

     The key price measures were revised generally lower in the second 

estimate for the quarter. The chain price index was revised down 

slightly to a 1.9% gain from the previously reported 2.0% rise, well 

below the 2.3% gain in the fourth quarter. 

     The closely watched core PCE price index was revised down to a 2.3% 

gain from 2.5% in the advance estimate, pulling the year/year rate for 

the measure down to 1.6% from 1.7% in the advance estimate, still 

slightly ahead of the 1.5% rise in the fourth quarter. 

     ** MNI Washington Bureau: Tel. (202)371-2121 **