US first-quarter GDP revised down on weak consumer spending
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The news: During the first quarter, consumer spending in the US grew at the weakest pace since the onset of the pandemic as outlays for recreation services fell off.
The numbers: Gross domestic product decreased at a downwardly revised 0.5% annual rate in Q1 in the third estimate of GDP by the US Commerce Department’s Bureau of Economic Analysis.
GDP was previously reported to have dropped at a 0.2% pace. The sharp downward revision reflects weaking consumer spending, as recreation services spending subtracted 0.14 percentage points from GDP in the period.
The context: The Commerce Department also released May data for the US merchandise-trade deficit on Thursday, seeing the shortfall widening to the largest drop in exports since 2022. The shortfall in goods trade grew 11.1% to USD96.6 billion ($147.55 billion), ahead of Bloomberg estimates.
US merchandise exports decreased 5.2% to USD179.2 billion in May, reflecting a sharp decline in shipments of industrial supplies. Imports were little changed from the month prior, which had seen the largest decline on record.
The sources: Bureau of Economic Analysis, Bloomberg, Reuters
