First quarter GDP growth was revised up to a 1.2% pace in the second estimate from the 0.7% gain in the advance estimate, with upward revisions seen for every component except for inventory growth, data released Friday by the Bureau of Economic Analysis showed.
Nonresidential fixed investment rose by 11.9% in the first quarter, upwardly revised from the already-strong 9.4% surge in the advance estimate. Investment in mining and wells was the key driver in the quarter. Investment in structures is now up 28.4% vs the 22.1% jump in advance estimate, while investment in equipment is up 7.2%, revised down from the 9.1% gain in the first estimate of the quarter.
PCE growth was revised up to a 0.6% annual rate from the 0.3% rise in the advance estimate. Durables PCE is now down 1.4%, an upward adjustment from the 2.5% decline in the advance estimated. Nondurable PCE was revised down to a 1.2% pace from the 1.5% rise in the advance estimated, but services PCE now stands up 0.8%, upwardly revised from the 0.4% gain in the advance estimated. Government spending was down 1.1% after revision, a slower pace of decline than the 1.7% drop in the advance estimate.
Residential fixed investment is now up 13.8%, a very small upward revision from the 13.7% increase in the advance estimated.
The net export gap is now reported a $599.9 billion for the first quarter, smaller than the $602.7 billion gap previously reported.
The only downward revision was in inventories, which are now up $4.3 billion in the first quarter after being reported up $10.3 billion in the advance estimate.
When the inventory slowdown is removed, real final sales were up 2.2% in the first quarter, an upward adjustment from the 1.6% gain previously reported.
The chain price index rose 2.2% in the first quarter, down from the 2.3% pace in the advance estimate. The closely watched core PCE price index was rose 2.1% in most recent estimate after being reported up 2.0% in the advance estimate. The year/year rate for this measure was unrevised at 1.7%, the same as in the third and fourth quarters.
Other data released at the same time shows durable goods orders down 0.7% in April and were down 0.4% when a 1.2% decline in transportation orders were removed. There was an upward revision to the March data that comes on top of the annual revisions that were releases earlier in the month.
