USA GDP slowdown in the 1Q17 due to lower consumer spending. USA GDP on pace for 2.1% growth in 2017.

1. UNITED STATES
– GDP – MARCH
2017
Paul Young CPA, CGA
April 29, 2017

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3. MARKETWATCH / USA GDP
Source – Marketwatch – April 28, 2017
The steep drop-off stemmed from the smallest increase in consumer spending since
the end of 2009, largely reflecting fewer sales at car dealers. Consumer outlays rose
just 0.3%, a steep drop from the 3.5% gain at the end of 2016.
Government also reduced spending and businesses scaled back on inventory
production to make sure they didn’t get stuck with lots of unsold goods on warehouse
shelves.
The pullback in consumer spending is unlikely to last, though.

4. GDP PERIOD OVER PERIOD CHANGE
▪ BEA – April 28, 2017

5. GDP / BREAKOUT
Source – BEA

6. DURABLE GOODS / USA
Source – BMO Economics
• Headline U.S. durable goods orders jumped
1.7% in February, the second 2%’ish
increase in a row. Much of this was due to
the transportation sector (big jump in
Boeing orders in the month). Excluding
transportation, orders were up a more mild
0.4%, the 8th consecutive advance. The
details were a tad disappointing, with
declines noted in communications,
computers/electronics and cars. But general
machinery continued to rise, which is
encouraging. (Business Investment)
• Core orders(nondefense capital goods ex
air) slipped for the first time since
December, down 0.1% last month (but
January’s 0.1% decline was erased and is
now showing up as an increase).
• Core shipments (nondefense capital goods)
also edged lower for the 2nd straight month,
down 0.1% but December was up bigly, or
2.4%.