Thursday, May 23, 2013
GDP confirmed at 0.3% - detail disappoints
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

Gross domestic product rose by 0.3% in the first quarter, in line with the preliminary estimate, but the economy is still in need of some serious rebalancing. Both net exports and investment subtracted from GDP by 0.1 points in the first quarter.

Investment was particularly disappointing. The 0.8% quarterly fall (including a 0.4% drop in business investment) was the largest for eight quarters, though the business investment numbers have been subject to considerable revision in the past.

There was a small rise in consumer spending, up 0.1%. This, surprisingly in the light of the continued drop in real wages, was the sixth quarterly increase in consumer spending in a row. Today's figures did not include any revisions to earlier quarters. If they occur, it will be on June 27. Details here.