The US economy grew at a seasonally adjusted annualized rate of 2.2 per cent in real terms, according to the second estimate released from the Bureau of Economic Analysis, down from 2.3 per cent reported in the advance estimate.  There were positive contributions from rising non-residential investment, personal consumer expenditures, exports, inventory investment and government spending at all levels.  A negative contribution from residential investment and rising imports offset some of these gains.

Although the US economy continues to grow, Q1 growth is slower than has been reported over the last three quarters.  The deceleration in real GDP growth is attributable to slower growth in personal consumer expenditure, exports and state/local government spending, and a downturn in residential investment.  These were mitigated by improvements in private inventory investment and non-residential investment, as well as decelerating imports.  

US nominal GDP growth (including the impacts of rising prices) was 4.2 per cent in Q1, compared to 5.3 per cent growth reported in 2017Q4.  Overall price growth (GDP deflator) accelerated to 2.7 per cent in Q1, including a 2.6 per cent rise in the broad price index for personal consumer expenditures. 

Note: the US Bureau of Economic Analysis notes that these advance estimates are based on incomplete or preliminary data sources and are subject to revision in subsequent estimates.

Source: US Bureau of Economic Analysis