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DE | Anytime | Flash | Q1 GDP: 3.2% But Big Inventory Correction Looming – 4/26/19
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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.
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Economic Studies Series #76
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