GDP Released On 6/25/2014 8:30:00 AM For Q1f:2014 Prior Consensus Consensus Range Actual Real GDP - Q/Q change - SAAR -1.0 % -1.8 % -2.4 % to -1.0 % -2.9 % GDP price index - Q/Q change - SAAR 1.3 % 1.3 % 1.2 % to 1.3 % 1.3 % Highlights Real GDP really surprised on the downside. Adverse winter weather had a huge impact as the first quarter fell a revised 2.9 percent after rising an annualized 2.6 percent in the fourth quarter. The latest number was significantly below market expectations for a 1.8 percent decline.
The good news is that weakness was largely in inventory investment as change in inventories posted at $45.9 billion, compared to $111.7 billion in the fourth quarter.
Finale sales of domestic product declined an annualized 1.3 percent after growing 2.7 percent in the prior quarter. Final sales to domestic purchasers edged up 0.3 percent in the first quarter, compare to 1.6 percent in the fourth quarter.
On the price from, the chain-weighted price index posted at 1.3 percent annualized, down from 1.6 percent in the fourth quarter. The latest number matched expectations. The core chain index eased to 1.2 percent in the first quarter from the reading of 1.9 percent in the fourth quarter. Real GDP growth is always quoted at a quarterly annual rate. It measures how much the economy has grown over a three-month period. Quarterly growth rates are often volatile; consequently, economists also like to look at the year-over-year growth in GDP. The yearly changes tend to be more stable. Data Source: Haver Analytics
It is common to compare quarterly changes at annual rates in the GDP deflator. These can be volatile, just like the quarterly swings in real GDP growth; as a result, the trend in inflation is better determined by year- over- year changes. Data Source: Haver Analytics
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