The U.S. first-quarter real gross domestic product revision was largely as private economists expected, showing a slightly better composition that bolstered growth and also confirming a surge in profits, due in part to tax breaks.
First-quarter real GDP was revised to a 0.9% rise. It was previously up 0.6%. In the fourth quarter real GDP advanced 0.6%.
Real consumption remains up 1.0%, with durables and nondurables spending dipping as consumers cut back on autos, gasoline, recreation, clothing, and other non-necessities. Food and housing spending gained. This remains the worst period for consumption since a similar 1.0% rise in the second quarter of 2001.
The personal consumption expenditure core price index is now plus-2.1%, a modest gain.
The first-quarter change mainly reflects better net exports and higher nonresidential investment than assumed in the first estimate.
— Market News International