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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 
     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. 
     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 ** 

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