Q1 GDP Growth Estimate Drops to 2.4%

Numbers nudged down for the Commerce Department's second estimate of first-quarter GDP growth, according to a report (link opens in PDF) released today.

In this most recent estimate, Q1 quarter-over-quarter real GDP growth clocked in at 2.4%, 0.1 percentage points below the Department's initial estimate. Analysts had expected the Commerce Department to stick with its initial 2.5% reading. A third estimate of Q1 GDP is expected June 26 from the department.

According to today's report, increases in private inventory investment and exports proved smaller than initial estimates had shown. Imports (a negative value on GDP) were also previously overestimated, according to the latest review, but their diminished effect wasn't enough to overshadow other declines.

In the report, the Commerce Department notes that, despite the drop, "the general picture of overall economic activity is not greatly changed." The majority of quarter-to-quarter gains came from increases in consumer spending, private inventory investment, fixed investment, and exports. Decreased government spending (a positive value on GDP) was the main drag on growth.

Inflation also dropped 0.1 percentage points to 1.1% between the first estimate and the most recent one, providing a slightly positive spin. In Q1 2012, both inflation and GDP quarter-over-quarter growth clocked in at 2.0%, according to the latest estimate.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2460898, ~/Articles/ArticleHandler.aspx, 9/29/2016 11:57:13 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,304.66 -34.58 -0.19%
S&P 500 2,166.86 -4.51 -0.21%
NASD 5,295.71 -22.84 -0.43%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes