Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. services data suggests downward revision to first-quarter GDP

Published 05/17/2019, 12:39 PM
Updated 05/17/2019, 12:40 PM
© Reuters. Construction lifts are parked near the Drydock Center in Boston

© Reuters. Construction lifts are parked near the Drydock Center in Boston

WASHINGTON (Reuters) - U.S. economic growth for the first quarter is likely to be revised lower after data on Friday suggested less consumer spending and investment in intellectual property products than initially estimated.

The findings of the Commerce Department's quarterly services survey, or QSS, come on the heels of data this week showing growth in manufacturing inventories in the first quarter was not as robust as initially estimated.

Before the QSS data, economists had expected that GDP growth for the January-March quarter would be trimmed to an annualized pace of 3.0 percent from a 3.2 percent rate.

Based on the QSS data, economists at JPMorgan (NYSE:JPM) and Action Economics estimated an additional one-tenth of a percentage point would be subtracted from the GDP estimate.

That suggests first-quarter GDP could be trimmed to a 2.9 percent rate when the Commerce Department's Bureau of Economics Analysis publishes its revision later this month.

© Reuters. Construction lifts are parked near the Drydock Center in Boston

"Data from the QSS point to modest downward revisions to the BEA's first-quarter estimates of consumer spending and investment in intellectual property products, which combined subtracted 0.1% percentage point from our growth tracking estimate," said Daniel Silver, an economist at JPMorgan in New York.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.