Monthly Review, April 2015

Publication Date: 

May 2015


First quarter real GDP in US grew 0.2%, well below the expected 1%, according to the initial estimate released by the Bureau of Economic Analysis. This increase primarily reflected positive contributions from personal consumption expenditures (PCE) and private inventory investment, which were partly offset by negative contributions from exports, nonresidential fixed investment, and state and local government spending. Real final sales of domestic product (GDP less change in private inventories) decreased 0.5% in the first quarter. This lack of growth pushed market expectations of a rate hike from mid-2015 to later in the year.