EmailAccording to the second estimate, GDP growth in the first quarter was 1.9% versus 2.2% in the advance estimate. GDP increased 3.0% in Q4 2011. The Briefing.com consensus expected first quarter GDP to be revised down to 2.0%. Excluding inventory changes, real final sales were revised up from 1.6% to 1.7%. That is up from a 1.1% gain in Q4 2011. The downward revision reflects weaker consumption growth (2.7% from 2.9%), government spending (-3.9% from -3.0%), and inventories ($57.7 billion from $69.5 billion).
The net export deficit widened slightly from -$410.1 bln to -$411.9 bln. Fixed investment spending was better than originally reported, increasing 4.9% versus a 1.4% jump reported in the advance estimate. Nonresidential investment was revised up from -2.1% to +1.9%. Investment spending in structures was revised up from -12.0% to -3.3%. Spending on equipment was also revised up to 3.9% from 1.7%. Residential investment increased 19.4%, up from a 19.1% gain in the advance estimate.
