The first reading on Q1 GDP just came out and the headline number was a miss. Growth decelerated to a pace of just 2.2 per cent from 3.0 per cent in Q4. Economists were looking for a 2.5 per cent.
However, the headline belied some good news in the underlying figures. Personal consumption jumped 2.9 per cent; economists were looking for 2.3 per cent. Also government spending fell 5.9 per cent, which confirms that they’re not the ones driving this economy.
The bad news from the BEA:
The deceleration in real GDP in the first quarter primarily reflected a deceleration in private inventory investment and a downturn in nonresidential fixed investment that were partly offset by accelerations in PCE and in exports.