FYI: Today the BEA released its third and final estimate of Q1 2016 GDP growth. After an initial release of 0.53% QoQ SAAR, growth was ultimately revised up to +1.08% QoQ SAAR. Today’s release showed upward revisions to health care services consumption, intellectual property investment, and goods exports, with downward revisions to other services spending (driving down total consumption growth), inventories, and imports. The net results were positive, but despite a positive revision cycle Q1 US GDP growth wasn’t very impressive. It’s important to remember that declines in oil patch investment still had a massive impact. Reduced oil field investment shaved 55 bps off Q1 GDP alone (after -45 bps, -68 bps, -29 bps, and -20 bps in each quarter of 2015 respectively). And that’s only accounting for wells specifically; the pass-through of lower investment in machinery, extraction equipment, and similar spending isn’t included in that figure.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/q1-gdp-finishes-revision-cycle-at-1-1-qoq-saar/
