- The US BEA revised Q1 GDP higher to 2% from 1.3%.
- US Dollar Index rises above 103.00 after GDP and Jobless Claims data.
The real Gross Domestic Product (GDP) of the US expanded at an annualized rate of 2% in the first quarter, the US Bureau of Economic Analysis' (BEA) final estimate showed on Thursday. This reading came in above the previous estimate and the market expectation of 1.3%.
The BEA reported that GDP “was revised up 0.7 percentage point from the second estimate, reflecting upward revisions to exports, consumer spending, state and local government spending, and residential fixed investment that were partly offset by downward revisions to nonresidential fixed investment, federal government spending, and private inventory investment. Imports were revised down.”
Key takeaways:
Compared to the fourth quarter, the deceleration in real GDP in the first quarter primarily reflected a downturn in private inventory investment and a slowdown in nonresidential fixed investment that were partly offset by an acceleration in consumer spending, an upturn in exports, and a smaller decrease in residential fixed investment. Imports turned up.
Current‑dollar GDP increased 6.1 percent at an annual rate, or $391.8 billion, in the first quarter to a level of $26.53 trillion, an upward revision of $43.5 billion from the previous estimate.
The price index for gross domestic purchases increased 3.8 percent in the first quarter, the same as the previous estimate. The personal consumption expenditures (PCE) price index increased 4.1 percent, revised down 0.1 percentage point. The PCE price index excluding food and energy prices increased 4.9 percent, a downward revision of 0.1 percentage point.
Disposable personal income increased $587.9 billion, or 12.9 percent, in the first quarter, an upward revision of $26.4 billion from the previous estimate. Real disposable personal income increased 8.5 percent, an upward revision of 0.7 percentage point.
Market reaction
The US Dollar Index rose following the report and the weekly Jobless Claims. The DXY climbed above 103.00, and it was up by 0.15% on the day, approaching daily highs.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD surges above 0.6600 on soft US jobless claims
The Australian Dollar rallied against the US Dollar on Thursday, printed gains of more than 0.60%, due to the Greenback remained offered following a softer than expected US jobs report. The AUD/USD trades back above the 0.6600 threshold as Friday’s Asian session begins.
EUR/USD climbs over 1.0780 on broad-market risk appetite recovery
EUR/USD gained ground on Thursday, finding upside on the week after the US Dollar broadly fell back after rising US Initial Jobless Claims sparked renewed hope of rate cuts from the Federal Reserve.
Gold marches higher as weak jobless claims, increase Fed rate cut speculation
Gold price resumed its uptrend on Thursday and climbed more than 1% as US Treasury yields dropped, undermining the Greenback's appetite. Labor market data from the United States was softer, increasing the chances for a rate cut by the Federal Reserve despite dealing with inflationary pressure.
Ethereum waiting on a bullish trigger, Consensys CEO takes a jab at the SEC
Ethereum co-founder alleges that the SEC aims to stifle innovation through its enforcement actions against Ethereum-related companies. Grayscale CEO says he's optimistic the SEC would approve its spot ETH ETF application.
Dow Jones Industrial Average gains 330 points as investors celebrate rising unemployment claims
The Dow Jones Industrial Average (DJIA) found further gains on Thursday as investors bet on Fed rate cuts to come after US Initial Jobless Claims rose to a multi-month high.