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.