Global| Jun 28 2018U.S. GDP Growth Lowered; Corporate Profits Strengthened
by:Tom Moeller
|in:Economy in Brief
Summary
U.S. economic growth in Q1'18 moderated slightly more than earlier estimates. Real gross domestic product grew at a 2.0% annual rate, revised from 2.2% reported last month and 2.3% estimated initially. The rise followed 2.9% growth [...]
U.S. economic growth in Q1'18 moderated slightly more than earlier estimates. Real gross domestic product grew at a 2.0% annual rate, revised from 2.2% reported last month and 2.3% estimated initially. The rise followed 2.9% growth during Q4'17. A 2.2% increase had been expected in the Action Economics Forecast Survey. It remained the weakest rate of growth in four quarters. Growth in the GDP price index was revised to 2.2% (1.9% y/y) from 1.9%.
After-tax corporate profits without inventory valuation and capital consumption adjustments increased 10.6%, revised from 7.8%, following a 9.6% decline. Volatility may have been exaggerated by significant tax law changes. Pretax profits with IVA & CCA gained 1.8% (6.8% y/y), revised from -0.6%, after a 0.1% slip.
The GDP figures can be found in Haver's USECON and USNA database. USNA contains virtually all of the Bureau of Economic Analysis' detail in the national accounts, including the integrated economic accounts and the recently added GDP data for U.S. Territories. The Action Economics consensus estimates can be found in AS1REPNA.
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Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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