Q1 GDP Revised Higher to -0.2%

The first quarter was bad for the economy but not quite as bad as previously thought. This morning, the government revised Q1 GDP up to -0.2%. That matches what the Street had been expecting.

The harsh winter weather and port delays that damped growth at the start of the year have given way to increases in consumer spending and housing, bolstering Federal Reserve projections that the setback was temporary. Still, pockets of weakness remain as lower oil prices continue to hinder investment in the energy industry and a firm dollar restrains global sales.

“What we are seeing here does validate the story that the first-quarter weakness was transitory,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York, who correctly forecast GDP. “The consumer is coming back to overall decent growth.”

Posted by on June 24th, 2015 at 12:58 pm


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