US Downgrades First-Quarter Economic Performance

Source: Bureau of Economic Analysis

The United States posted a bigger economic decline in the first quarter than earlier announced, reflecting revisions to downward revisions in private inventory investment and residential investment. QQQ is up 1.68%, while SPY is up 1.48%.

• The first-quarter real gross domestic product contracted by 1.5%, slightly weaker than the earlier announced 1.4% contraction for the period. 
• The latest reading compares with the 6.9% growth in the previous quarter.
• The revision takes into account the revisions to private inventory investment and residential investment.
• The drop in private inventory investment was led by the decreases in wholesale trade such as mining, utilities, and construction.
• Federal government spending reflected a decrease in defense spending on intermediate goods and services.
• The downward revisions were partly offset by an upward revision in consumer spending, which reflected widespread increases in services. 
• The increase in durable goods was offset by the decrease in nondurable goods.
• Real gross domestic income increased by 2.1% in the quarter, slower than the 6.3% expansion recorded the previous quarter.