A Complete Breakdown Of US GDP Growth In One Simple Chart

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.

Here’s a chart from Scott Barber of Thomson Reuters Datastream.  It offers an elegant breakdown of the components of GDP growth.

chart

Photo: Scott Barber / Thomson Reuters Datastream

SEE ALSO: Nomura’s Guide To Where The World Is Heading In 2012 And 2013 >

 

 

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