US Q3 2018 GDP unchanged, PCE softer, spending and sales down

Q3 2018 US GDP 1st revision 28 November 2018

GDP 1st revision 3.5% vs 3.5% exp q/q ann. Flash 3.5%. Q2 4.2%
Sales 1.2% vs 1.4% exp. Prior 1.4%
Consumer spending 3.6% vs 4.0% prior
PCE 1.5% vs 1.6% exp. Prior 1.6%
Core PCE 1.5% vs 1.6% exp. Prior 1.6%
Deflator 1.4% vs 1.4% exp. Prior 1.4%
Corp profits 3.3% vs 2.0% exp. Prior 2.1%
Exports -4.4% vs -3.5% prior
Imports 9.2% vs 9.1% prior
Business investment 2.5% vs 0.8% prior
Business inventory change 86.6bn vs 76.3bn, adds 2.27PP to the change in GDP

Overall, unchanged but a softer underbelly.

The inventories will be looked at mostly but there’s slightly softer numbers from the consumer side. Business Investment improved a good deal, while home investement only did by not being as bad as previously. Home investment was -2.6% vs -4.0% prior, biz investment in structures -1.7% vs -7.9% prior.

It’s a mixed report.