Q1 GDP Revised Upwards

by Marilou Long on June 24, 2015

in Economic Indicators

The previous estimate for Q1 GDP was -0.7%, but stronger consumer spending led to a revision upwards to -0.2%.  From the linked WSJ article:

The revision showed consumer spending was stronger than previously estimated and that firms stocked up more on inventory.

Still, the data continues a familiar pattern in the current expansion, in which several quarters of impressive growth are upended by a significant slowdown. The latest reading marks the fifth time in the six-year old recovery when the economy failed to achieve at least a 1% growth rate for a quarter.

GDP measures have been difficult to read recently due to large revisions. Initially the government said the economy advanced at 0.2% pace last quarter. The figure was revised down last month to 0.7% contraction before being recast again Wednesday. Further revisions are possible in July when the Commerce Department issues its annual revisions alongside its first read of second-quarter output.

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