U.S. first-quarter GDP contracted at slightly faster rate, revised data show

[mahatmakanejeeves]

Last edited Thu May 26, 2022, 12:59 PM - Edit history (2)

Source: MarketWatch

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U.S. first-quarter GDP contracted at slightly faster rate, revised data show

Published: May 26, 2022 at 8:45 a.m. ET

By Greg Robb

The U.S. economy contracted at a negative 1.5% annual rate in the first quarter instead of the initial estimate of negative 1.4%, revised government data released Thursday show. Forecasters surveyed by the Wall Street Journal had expected a slight upward revision to a negative 1.3% reading. Economists believe the contraction overstates the slowing economy. Most of the weakness stemmed from the record trade deficit as consumers opened their wallets and bought foreign goods. In fact, consumer spending was revised higher in the first quarter, to a 3.1% rate up from the prior estimate of a 2.7% increase. The downward revision to GDP was led by weaker inventory and household investment. Looking ahead, economists at IHS forecast the economy will grow at a 2% annual rate in the second quarter. In one piece of new data, corporate profits fell at a 2.3% rate in the first quarter after a 0.7% gain in the prior three months. This is the first decline in five quarters. On a year-on-year basis, corporate profits are up 12.5%.

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About the Author

Greg Robb
Greg Robb is a senior reporter for MarketWatch in Washington. Follow him on Twitter @grobb2000.
https://twitter.com/grobb2000

Read more: https://www.marketwatch.com/story/us-first-quarter-gdp-contracted-at-slightly-faster-rate-revised-data-show-2022-05-26

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This is an annual rate, as Greg Robb points out.

The news is already in GD, but I feel the need for criticism.

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First-quarter GDP declined 1.5%, worse than thought; jobless claims edge lower

https://www.democraticunderground.com/100216730945

[mahatmakanejeeves]

1. From the source:

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, Thursday, May 26, 2022
BEA 22–20

Gross Domestic Product (Second Estimate) and Corporate Profits (Preliminary), First Quarter 2022

Real gross domestic product (GDP) decreased at an annual rate of 1.5 percent in the first quarter of 2022 (table 1), according to the "second" estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 6.9 percent.

The GDP estimate released today is based on more complete source data than were available for the "advance" estimate issued last month. In the advance estimate, the decrease in real GDP was 1.4 percent. The update primarily reflects downward revisions to private inventory investment and residential investment that were partly offset by an upward revision to consumer spending ( refer to "Updates to GDP" ).

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[progree]

2. "I feel the need for criticism". U have another opportunity: 830 AM ET Friday

Personal income, consumer spending, and the almighty PCE inflation report