WASHINGTON, DC (US), AMBITION (10:52 a.m. EST) — Real gross domestic product (GDP) in Q1 is expected to be revised down from the advance estimate of 1.1% to an annualized rate of 1.0%, according to economists surveyed by Bloomberg ahead of the Bureau of Economic Analysis’s second estimate. The survey also predicts that personal consumption expenditures (PCE) will be revised down from 2.7% to 2.6%, while the core PCE price index, the Federal Reserve’s preferred measure of inflation, is predicted to remain unchanged at 5.1%.
The Bureau of Economic Analysis is scheduled to release its revised GDP estimate at 8:30 a.m. EST on July 28th.
The GDP estimate is a key indicator of the health of the U.S. economy, and the upcoming revision will be closely watched by economists, businesses, and investors. The revision could have implications for the Federal Reserve’s decision-making on interest rates, as the central bank is aiming to bring inflation down to its target of 2%.
In addition to the GDP revision, the Bureau of Economic Analysis will also release revised data on personal income and spending, as well as the personal consumption expenditures price index. These data will provide further insights into the strength of the U.S. economy and the impact of inflation on consumers.
The Bloomberg survey of economists also predicts that:
* Nonresidential fixed investment will be revised down from 2.3% to 2.2%..
* Residential fixed investment will be revised down from -4.5% to -4.7%..
* Government spending will be revised up from 2.7% to 2.8%..
* Net exports will be revised up from -0.1% to 0.1%.
The upcoming GDP revision is likely to be closely scrutinized by the Federal Reserve as it considers its next policy move. The central bank has already raised interest rates four times this year in an effort to curb inflation, and economists are divided on whether it will continue to raise rates at the same pace.
Some economists believe that the Fed will slow the pace of rate hikes in light of the weaker GDP growth, while others believe that the Fed will continue to raise rates aggressively in order to bring inflation down to its target.
The GDP revision will be a key piece of data that the Fed will consider when making its next decision on interest rates..
