Friday, June 25, 2010

GDP Q1 2010

Released on 6/25/2010 8:30:00 AM For Q1f

PriorConsensusConsensus RangeActual
Real GDP - Q/Q change - SAAR3.0 %3.0 %2.8 % to 3.3 %2.7 %
GDP price index - Q/Q change - SAAR1.0 %1.0 %1.0 % to 1.1 %1.1 %
Market Consensus Before Announcement
GDP growth for the first quarter was revised down to an annualized 3.0 pace from the initial estimate of 3.2 percent. The overall revision was net many small changes and was not a result of a large change to any one component. But there still is strength in a number of components compared to the fourth quarter and earlier. Real PCEs growth is moderately strong while investment in equipment and software posted a healthy 12.7 percent boost. Inventory investment contributed to growth significantly. However, net exports worsened as import gains outpaced improvement in exports. Nonresidential and residential structures both declined. The GDP price index was revised up incrementally to 1.0 percent annualized from the initial estimate of 0.9 annualized. 

Gross Domestic Product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy.  Why Investors Care
[Chart] Real GDP growth is always quoted at a quarterly annual rate. It measures how much the economy has grown over a three-month period. Quarterly growth rates are often volatile; consequently, economists also like to look at the year-over-year growth in GDP. The yearly changes tend to be more stable.
Data Source: Haver Analytics
[Chart] It is common to compare quarterly changes at annual rates in the GDP deflator. These can be volatile, just like the quarterly swings in real GDP growth; as a result, the trend in inflation is better determined by year- over- year changes.
Data Source: Haver Analytics

No comments: