US real GDP grows 1.3% in first quarter vs. 1.6% in first estimate
- The BEA revised Q1 US GDP growth lower to 1.3%.
- US Dollar Index stays in negative territory below 105.00.
The US' real Gross Domestic Product expanded at an annual rate of 1.3% in the first quarter, the US Bureau of Economic Analysis' (BEA) second estimate on Thursday. This reading followed the 1.6% growth recorded in the first estimate and came in line with the market expectation.
"With the second estimate, downward revisions to consumer spending, private inventory investment, and federal government spending were partly offset by upward revisions to state and local government spending, nonresidential fixed investment, residential fixed investment, and exports," the BEA explained. "Imports were revised up."
Economic Indicator
Gross Domestic Product Annualized
The real Gross Domestic Product (GDP) Annualized, released quarterly by the US Bureau of Economic Analysis, measures the value of the final goods and services produced in the United States in a given period of time. Changes in GDP are the most popular indicator of the nation’s overall economic health. The data is expressed at an annualized rate, which means that the rate has been adjusted to reflect the amount GDP would have changed over a year’s time, had it continued to grow at that specific rate. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.
Read more.Next release: Thu Jun 27, 2024 12:30
Frequency: Quarterly
Consensus: -
Previous: 1.3%
Source: US Bureau of Economic Analysis
The US Bureau of Economic Analysis (BEA) releases the Gross Domestic Product (GDP) growth on an annualized basis for each quarter. After publishing the first estimate, the BEA revises the data two more times, with the third release representing the final reading. Usually, the first estimate is the main market mover and a positive surprise is seen as a USD-positive development while a disappointing print is likely to weigh on the greenback. Market participants usually dismiss the second and third releases as they are generally not significant enough to meaningfully alter the growth picture.
Market reaction to US GDP revision
The US Dollar (USD) came under bearish pressure with the immediate reaction. At the time of press, the USD Index was down 0.3% on the day at 104.80.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.27% | -0.19% | -0.67% | -0.15% | -0.33% | -0.03% | -0.88% | |
| EUR | 0.27% | 0.08% | -0.37% | 0.12% | -0.07% | 0.22% | -0.62% | |
| GBP | 0.19% | -0.08% | -0.46% | 0.03% | -0.15% | 0.15% | -0.68% | |
| JPY | 0.67% | 0.37% | 0.46% | 0.49% | 0.31% | 0.56% | -0.23% | |
| CAD | 0.15% | -0.12% | -0.03% | -0.49% | -0.18% | 0.11% | -0.73% | |
| AUD | 0.33% | 0.07% | 0.15% | -0.31% | 0.18% | 0.28% | -0.55% | |
| NZD | 0.03% | -0.22% | -0.15% | -0.56% | -0.11% | -0.28% | -0.83% | |
| CHF | 0.88% | 0.62% | 0.68% | 0.23% | 0.73% | 0.55% | 0.83% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
