• Prior estimate 1.6%. Prior quarter 0.5%
• GDP Final Q1 2.1% vs 1.6% estimate and 1.6% prior estimate
• GDP sales final 1.9% vs 1.5% estimate and 1.5% prior estimate
• GDP consumer spending final 0.5% versus 1.4% prior estimate
• GDP Deflator 3.6% vs 3.5% est. and 3.5% prior estimate.
• Core PCE Final 4.4% vs 4.4% estimate and 4.4% prior estimate.
• PCE Prices Final 4.6% vs 4.5% estimate and 4.5% prior estimate.
• PCE Ex Food, energy and Housing 4.8% versus 4.7% prior estimate.
• PCE Excluding Energy and housing 4.7% versus 4.6% prior estimate.

Contributions into GDP:

• Consumption 0.37%.
• Investment 1.35%
• Net exports of goods and services -0.37%
• Government 0.74%

Sticking out is the low real consumption number at 0.37%.The US economy has traditionally been pushed by the consumer with Trade subtracting and investment, Government in between. That mix was jumbled up a bit. Trade was less of a drag. Government and investment led the gains.

Looking at the contributions by industry group, the information and Federal government led the way with 0.69%. Retail trade was the weakest at -0.47%.

Other details:

The latest GDP revisions painted a mixed picture of the U.S. economy. Underlying private demand slowed, with real final sales to private domestic purchasers rising just 1.7%, down from the previous estimate of 2.4%. Real gross output increased 1.7%, driven primarily by a 4.9% surge in government output, while private goods-producing industries were essentially flat. On the income side, real GDI rose 1.2%, and the average of GDP and GDI increased 1.7%, suggesting the economy continued to expand at a modest pace. Meanwhile, corporate profits increased by $74.4 billion, a stronger gain than previously estimated. Inflation pressures remained elevated, with the PCE price index rising 4.6% and core PCE increasing 4.4%, indicating that inflation remained well above the Fed’s target during the quarter.

This article was written by Greg Michalowski at investinglive.com.