WASHINGTON — The U.S. first-quarter real gross domestic product revision was as expected at plus-1.0%, with very minor changes in components. Growth seems to be continuing at a similar slow pace as the second quarter comes to an end.
New data on imports-exports, medical care, and inventories boosted consumption and cut utilities’ inventories. These had the result of boosting first-quarter growth overall and altering the composition of GDP to a more favorable path — showing less inventory overhang and more demand.
Inflation measures changed little, with the GDP price index at up 2.7% and core PCE prices up 2.3%.
The overall picture from the quarter remains that consumption slowed but remained positive, and that exports and government spending continued to support growth while investment for both structures and business projects weakened.
Corporate profits from current production are now down $5.2 billion in the first quarter, reflecting drops in domestic and overseas profits. Domestic weakness has spread from the financial sector into a broad range of non-financial firms, including utilities and manufacturing industries.
The Commerce Department said the annual GDP revision is due July 31 with the next data release. At that time, the statisticians will update trade, inventories, and federal budget data.
— Market News International
