US Q1 final GDP -0.5% vs -0.2% expected

• Second estimate was -0.2%
• Final Q4 reading was +2.4%
• Final sales 3.3% vs +3.2% second reading
• Consumer spending +0.5% vs +1.2% second reading
• Corporate profits -3.3% vs -3.6% second reading

Contributors and subtractors:

• Consumption: +0.31% vs +0.80% second reading
• Government: -0.10% vs -0.12% second reading
• Net International trade: -4.61% vs -4.90% second reading
• Inventories: +2.59% vs +2.64% second reading

So the trade numbers improved from the second estimate but that was undermined by worse consumption data. That’s not a great sign going forward.

Inflation data:

• GDP deflator +3.8% vs 3.7% exp
• Core PCE final +3.5% vs +3.4% exp
• Services excluding energy and housing +4.3% vs +4.1% prior
• Prices final +3.7% vs +3.6% prior

The numbers are a tad hot but dated at this point.

This article was written by Adam Button at www.forexlive.com.