The Advance Estimate of 2nd Quarter GDP from the Bureau of Economic Analysis released on Friday included an annual revision to the past 3 years of GDP releases, revising previously published data from the first quarter of 2014 through the first quarter of 2017, which on net indicated that US economic growth over the period from 2014 to 2016 was at a 2.3% annual rate, revised from the 2.2% composite annual growth previously published for that period
The first quarter GDP initial estimate is a pathetically weak 0.7%. While the usual suspects, changes in private inventories, imports and government spending all contracted, the real drama is in the very weak consumer spending growth. Consumer spending is most of GDP and only gained a paltry 0.3% for Q1.
The GDP initial estimate reports a weak 1.9% economic growth for the 4th quarter. Imports really hammered GDP, just in time to validate now President Trump. Consumer spending was lower while changes in private inventories added a full percentage point to Q4 GDP. Generally speaking this report shows just how much imports can slow economic growth. U.S. Exports curtailed and as a result, -1.7 percentage points of GDP were lost in Q4.
The Third Estimate of our 3rd Quarter GDP from the Bureau of Economic Analysis indicated that our real output of goods and services increased at a 3.5% annual rate, revised from the 3.2% growth rate reported in the second estimate last month, as personal consumption growth was revised higher, state and local government shrunk less than was previously estimated, and private non-residential fixed investment increased, rather than decreased.
The GDP initial estimate reports a solid 2.9% economic growth for the third quarter. Trade exports and private inventories accelerated in Q3. Consumer spending was home hum, although durable goods consumer spending dramatically increased. Residential investment declined for the quarter. While a nice report, GDP is always revised and this is just the initial release.
The first Q2 GDP estimate shows a surprising sputtering 1.2% of economic growth. That is a much weaker second quarter than most expected as investment declined -9.7% from the first quarter and the price index was much higher. Worse, GDP was revised for 2016 Q1 back to 0.8%. GDP for years 2015, 2014 and 2013, were all revised higher. Yet since Q2 2015, quarterly GDP was revised lower, showing quite the sluggish slowdown going on for at least a year.
Q1 GDP was revised upward to 1.1%. Originally GDP was estimated to be 0.5%, then revised up to 0.8% and now reported to be 1.1%. While consumer spending was revised somewhat lower again, exports came to the rescue and bumped up Q1 GDP. Private investment contraction was less than originally estimated as well. Now GDP is still weak but not anything to be concerned about. Seems revisions always change the economic growth story and Q1 is no exception.
The Second Estimate of our 1st Quarter GDP from the Bureau of Economic Analysis indicated that our real output of goods and services grew at a 0.8% rate in the 1st quarter, revised up from the 0.5% growth rate reported in the advance estimate last month, as residential investment was revised higher, growth in private inventory investment decreased less than was previously estimated, and exports were down less than had previously been reported.
The initial Q1 GDP estimate shows economic growth as a stagnant 0.5%. Consumer spending was all services consumption. Private investment just walloped the economy as both nonresidential fixed investment and the changes in private inventories contracted. Exports also receded. An ominous bright spot is residential investment grew by almost half a percentage point. Government spending added to GDP.
Q4 GDP was revised upward again to now be 1.4%. That's double the original advance report of 0.7% and the first revision was 1.0%. The primary cause of the upward revision was more consumer spending in services than previously estimated. The trade deficit Q4 GDP impact was significantly less. Residential housing was revised upward as well.
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