Final US Q1 GDP – 1.6% vs. -1.5% expected

  • The second reading was -1.5%
  • Final core PCE prices + 5.2% vs. + 5.1% forecast
  • Final PCE prices 7.1% vs 7.0% second reading
  • Contraction of 8.3% vs. 8.1% expected
  • Final sales -1.2% vs. -0.5% expected
  • Final consumer spending +1.8% vs. +3.1% second reading
  • Inventory change +188.5 vs. +149.6 billion second reading

Percentage Contributions:

  • Inventories reduced 0.35 points of GDP compared to -1.09 points in the second reading
  • Net trade fell 3.23 points from 3.23 points in the second reading
  • Personal consumption added 1.24 pp versus +2.09 pp in the second reading
  • Gross private domestic investment +0.93 vs. +0.10 pages in second reading
  • Government spending -0.51 compared to -0.47 points in the second reading

Negative reviews in spending and higher reviews in inflation

inflation

Inflation is defined as a quantitative measure of the rate at which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where you actually buy a particular currency for less than in previous periods. In terms of valuation of strength or currencies, and thus foreign exchange, inflation or its measures are very influential. Inflation stems from the general creation of money. This money is measured by the level of the total money supply of a particular currency, for example the US dollar, which is constantly increasing. However, an increase in the money supply does not necessarily mean that there is inflation. What leads to inflation is a faster increase in the money supply relative to the wealth produced (measured in GDP). As such, this generates demand pressure on supply which does not increase at the same rate. Then the CPI rises causing inflation, so how does inflation affect forex? The level of inflation has a direct effect on the exchange rate between two currencies at several levels, including purchasing power parity which attempts to compare the different purchasing powers of each according to the general price level. In doing so, this makes it possible to determine which country has the most expensive cost of living, so the currency with the highest inflation rate loses its value and falls in value, while the currency with the lowest inflation rate rises in value in the forex market. Also affected. Extremely high inflation rates drive interest rates higher, causing the currency to depreciate on foreign currencies. Conversely, very low inflation (or deflation) pushes interest rates down, causing the currency to appreciate in the forex market.

Inflation is defined as a quantitative measure of the rate at which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where you actually buy a particular currency for less than in previous periods. In terms of valuation of strength or currencies, and thus foreign exchange, inflation or its measures are very influential. Inflation stems from the general creation of money. This money is measured by the level of the total money supply of a particular currency, for example the US dollar, which is constantly increasing. However, an increase in the money supply does not necessarily mean that there is inflation. What leads to inflation is a faster increase in the money supply relative to the wealth produced (measured in GDP). As such, this generates demand pressure on supply which does not increase at the same rate. Then the CPI rises causing inflation, so how does inflation affect forex? The level of inflation has a direct effect on the exchange rate between two currencies at several levels, including purchasing power parity which attempts to compare the different purchasing powers of each according to the general price level. In doing so, this makes it possible to determine which country has the most expensive cost of living, so the currency with the highest inflation rate loses its value and falls in value, while the currency with the lowest inflation rate rises in value in the forex market. Also affected. Extremely high inflation rates drive interest rates higher, causing the currency to depreciate on foreign currencies. Conversely, very low inflation (or deflation) pushes interest rates down, causing the currency to appreciate in the forex market.
Read this term Both should have submitted to a more negative review overall. This was offset by upward revisions to stocks.

Overall, this inventory build will drag growth away from the second quarter and beyond, so we’re seeing a negative reaction in the broader markets. In the long run, higher business investment can also translate into better productivity and production. The main beneficiary of the revisions was the investment in equipment.

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