US Q1 GDP Growth Rate Revised Down from 2.0% to 1.6%

Impact of Adjustments to Private Inventory Investment and Personal Consumption

The United States' economic growth rate for the first quarter of this year has been revised downward from earlier reports.

On May 28 (local time), the U.S. Department of Commerce announced that the preliminary growth rate of the country's gross domestic product (GDP) for the first quarter of this year was recorded at an annualized rate of 1.6% compared to the previous quarter.

This figure is 0.4 percentage points lower than the advance estimate of 2.0% released last month, and it also falls short of the 2.0% forecast by experts surveyed by Dow Jones.

The Department of Commerce explained that the downward revision in overall growth was due to the adjustments to private inventory investment and personal consumption, both of which were revised downward compared to the advance estimate.

The growth rate of personal consumption was revised from 1.6% down to 1.4%. The personal consumption growth rate continued to slow, following 3.5% in the third quarter and 1.9% in the fourth quarter of last year, and it further decelerated in the first quarter of this year.

Although the growth rate of private investment was revised down from 8.7% to 7.0%, its contribution to first-quarter growth still reached 1.19 percentage points. In particular, investment in information processing equipment made a significant contribution, accounting for 0.87 percentage points.

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