» DE | Anytime | Flash | Q1 GDP: 3.2% But Big Inventory Correction Looming – 4/26/19 Decision Economics

DE | Anytime | Flash | Q1 GDP: 3.2% But Big Inventory Correction Looming – 4/26/19

Posted April 26, 2019 by rvillareal

Not yet a Decision Economics member?  Click here to register for a FREE 30 day trial.  

If you are already a member, click here to login.

DE assessment:  GDP rose 3.2% well above expectations (DE: 2.4%; consensus 2.3%).  The surprises came from a large increase in inventory investment (adding 0.6 percentage point to GDP growth) and a larger than expected improvement in the trade gap (1.0 percentage point).  Underlying demand growth rose only 1.4%, close to our expectations.  So the 3.2% headline print overstates the strength in Q1 as the long awaited inventory correction continues to be delayed.