What were the key revisions in the latest US GDP data?

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Key Revisions in Latest US GDP Data Revealed Downward Adjustments Across Several Economic Indicators

US economic growth for the first quarter of 2019 was revised downwards to 3.1 per cent from the previously reported 3.2 per cent, according to updated data. While overall growth remained robust, the revisions highlighted a slowdown in corporate spending on equipment and software, a decline in corporate profits for the second consecutive quarter, and trimmed estimates for worker pay and inflation-adjusted disposable income. Despite these adjustments, certain components like exports and consumer vehicle purchases were revised upwards, and manufacturing activity estimates were improved.
Corporate Profits and Investment Saw Significant Declines

Corporate profits experienced their second consecutive quarterly drop, marking the most substantial decrease in over three years, with company earnings falling by US$65.4 billion compared to the last quarter of 2018. This followed a US$9.7 billion decline at the end of 2018. Concurrently, business spending on fixed assets, such as factories and equipment, registered its weakest performance since the end of 2015, indicating a broader trend of reduced investment.
Consumer Spending and Income Estimates Trimmed

Revisions to the data also indicated a softening in consumer income. Estimates for worker pay and inflation-adjusted disposable income were reduced, suggesting that consumers may have less discretionary funds available for spending in subsequent quarters. Furthermore, the personal consumption expenditures price index (PCE), a key measure of inflation, was revised downwards, signalling potentially weaker inflationary pressures.
Trade Dynamics and Government Shutdown Impact Noted

While exports saw an increase, imports reached their lowest point in over six years, suggesting a potential deceleration in domestic demand. The report also acknowledged the impact of the extended five-week government shutdown earlier in the year, which is estimated to have shaved approximately 0.3 percentage points off the first-quarter growth figure by disrupting essential federal services critical to economic operations.

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What were the key revisions in the latest US GDP data?

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