Today’s GDP report from the Bureau of Economic Analysis revised the estimate for Q1 growth sharply downward, from 2.4 percent to 1.8 percent. As the following chart shows, the revision makes the rebound from the slowdown at the end of last year look less robust.
early estimates for each quarter are based on incomplete data
supplemented by extrapolations from historical trends, and revisions are
common. The revision announced today was larger than usual, however.
The average revision (without regard for sign) is 0.2 percentage points
from the second estimate to the third. This time it was 0.6 points. The
change from April's advance estimate of 2.5 percent was even larger. How
can we explain it? >>>Read more
Follow this link to view or download a classroom-ready slideshow with charts and analysis of the latest GDP data