This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

First Quarter GDP Estimate Falls Short

(GDP report updated with corporate profits and inflation numbers)

NEW YORK ( TheStreet) --The government's stuck to its advance estimate for first-quarter GDP, disappointing economists who had expected a slight upward revision.

The economy expanded at an annual rate of 1.8% during the first quarter. Upward revisions to exports, to private inventory investment, and to nonresidential fixed investment were offset by an upward revision to imports and a downward revision to personal consumption expenditures.

In the fourth quarter, the economy expanded at an annual rate of 3.1%. The slowdown in the first quarter has been attributed among other things to rough weather, but there are growing concerns that the economy might be slowing down as consumers deal with rising oil prices.

Personal income and spending data will be released on Friday. Personal income is expected to rise 0.4%, while personal spending is forecast to rise 0.5%.

The government also released for the first time its report on corporate profits during the first quarter. Profits during the first quarter rose to a seasonally adjusted annual rate of $1.7 trillion, up 8.5% over the year-ago period, and 1.3% over the prior quarter.

The Personal Consumption Expenditure Index, an indicator of inflation, rose 3.8% in the first quarter. The core Personal Consumption Expenditure Index, the Fed's preferred measure of inflation because it excludes volatile food and energy prices, rose 1.4%, well within the Fed's comfort range of close to 2%.

--Written by Shanthi Bharatwaj in New York



>To contact the writer of this article, click here: Shanthi Bharatwaj.

>To follow the writer on Twitter, go to http://twitter.com/shavenk.

>To submit a news tip, send an email to: tips@thestreet.com.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $127.00 -0.47%
FB $84.25 1.40%
GOOG $536.36 0.18%
TSLA $209.76 2.20%
YHOO $44.78 0.28%

Markets

DOW 17,986.65 -48.28 -0.27%
S&P 500 2,102.30 +1.90 0.09%
NASDAQ 5,020.2970 +25.6950 0.51%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs