U.S. Q1 GDP meets expectations as U.S. economy recovers
(Kitco News) The third reading of the U.S. Q1 GDP data did not surprise the markets, with the U.S. economy growing 6.4% as expected.
There were upward revisions to nonresidential fixed investment, private inventory investment, and exports. But this was offset by an upward revision to imports, which is a subtraction from the GDP calculation.
The second estimate released last month showed the same increase of 6.4% in real GDP, the U.S. Commerce Department said on Thursday.
"The increase in real GDP in the first quarter reflected increases in personal consumption expenditures (PCE), nonresidential fixed investment, federal government spending, residential fixed investment, and state and local government spending that were partly offset by decreases in private inventory investment and exports. Imports increased," the report said.
Gold prices were largely unchanged, with August Comex gold futures last trading at $1,785.80, up 0.13% on the day.
Personal consumption was boosted by increased volumes of durable goods, such as autos and parts, as well as non-durable goods, such as food and beverages. Services were also up.
On the inflation front, the PCE price index rose 3.7% compared to an advance of 1.5% in Q4 of 2020. Core PCE, which strips out volatile food and energy prices and is the Federal Reserve’s preferred inflation metric, was up 2.5% compared to an increase of 1.3% posted in the prior quarter.