GDP Increased By More Than We Thought
The US economy expanded faster in Q1 than previously estimated, with GDP rising 0.8% annualized according to the revised Commerce Department numbers. That’s up from the 0.5% originally reported.
The 0.8% figure is still the smallest gain in a year, and doesn’t change the perception of a slow Q1—for the third year in a row.
“It’s still a very poor start to the year,” Moody’s senior economist Ryan Sweet tells Bloomberg. “From past experience, we get most of that back in the second quarter.”
The revisions also showed that Q4 income increased more than expected, with wages and salaries growing by $125.5B, up from the $81.7B previously reported. The new number marks the biggest quarterly gain in almost two years. [Bloomberg]