30 May 2013
US, the sting of austerity - Nomura
FXstreet.com (London) - Economist Ellen Zentner at Nomura said that the Q1 GDP data continue to paint the picture of an economy with strengthening fundamentals that is facing significant fiscal drag - a "tug-of-war" as New York Federal Reserve Bank President Dudley recently characterized it.
The Bureau of Economic Analysis (BEA) revised its original estimate of Q1 GDP growth to 2.4% from the originally reported 2.5% (annual rate). Ellen Zentner said that the revision was very small compared with the historical norm of +-0.5 percentage points (pp) from the advanced to second reading. Adding, though the revision was downward, the underlying dynamics were more positive for current quarter growth.
The Bureau of Economic Analysis (BEA) revised its original estimate of Q1 GDP growth to 2.4% from the originally reported 2.5% (annual rate). Ellen Zentner said that the revision was very small compared with the historical norm of +-0.5 percentage points (pp) from the advanced to second reading. Adding, though the revision was downward, the underlying dynamics were more positive for current quarter growth.