Advance GDP +2.3% - well above forecast
Thus was the initial look at first quarter GDP and so arguably the most important, unless subsequent revisions prove significant.
Analysts had been busy revising down their forecast for the number. Nevertheless, today’s release will be a relief as it suggests that the US economy is not yet ready to roll over. Analysts have been growing concerned that the US was heading into a period of stagflation where economic growth is slowing while inflation continues to push higher. So today’s number will bring some relief, although the resulting rally in bond yields (if continued) may temper gains in equities.
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