Monday, June 1, 2009

GDP Revision Breakout

Still on the road, but wanted to catch up on last weeks GDP revision. The Big Picture with the details of the change from last month's advance reading:

Q1 GDP was revised to a decline of 5.7%, an improvement from the initial reading of -6.1% but a touch weaker than the forecast of -5.5%. A downward revision to personal consumption to 1.5% from 2% was offset by a slightly less than expected drop in gross private investment, exports and a less of a drag from inventories. The government spending drop was also revised slightly higher. Real final sales, which takes out the influence of inventories, was left unchanged at -3.4%. With the economy 2/3 done with Q2 and the market looking towards an expected improvement in 2nd half GDP, this revision should be looked at as old news.


Source: BEA

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