Q1 GDP Revised To 1.2% On Stronger Spending, Capex, While Corporate Profits Tumble

Jon Government

After a very disappointing first Q1 GDP print of only 0.7%, on Friday the BEA reported that its second estimate of first quarter growth showed a sizable rebound, with annualized GDP growing at 1.2%, above the 0.9% estimate. The growth rate, however, was still well below the 2.1% print from Q4 2016.

The increase in real GDP was accounted for by increases in business investment, housing investment, consumer spending on services, and exports. These increases were partly offset by decreases in inventory investment, and government spending. Imports, which are a subtraction from GDP, increased. The upward revision to the second estimate of GDP growth reflected upward revisions in business investment, consumer spending in services, and state and local government spending. These upward revisions were partly offset by a downward revision to inventory investment.

This post was published at Zero Hedge on May 26, 2017.