By Thomas Cooley and Peter Rupert
The BEA’s 2nd estimate of Q1 GDP shaved off 0.1 percentage points to a now revised growth rate of 2.2% at a seasonally adjusted annualized rate. Personal consumption expenditures were quite weak, revised down from 1.1% to 1.0% , the lowest reading since 2013 Q2. The change also resulted from downward revisions to private inventory investment, residential fixed investment (revised from 0.0% to -2.0%), and exports, but partly offset by an upward revision to non-residential fixed investment (from 6.1% to 9.2%).
May Employment Report
Today’s employment report from the BLS revealed continued strength in the labor market with an increase of 223,000 jobs, of which 218,000 were in the private sector. The only significant declines were found in motor vehicles and parts, down 4,400 and temporary help services, down 7,800.
Average weekly hours remained at 34.5 for the fourth month in a row. Average hourly pay increased from $26.84 to $26.92.
The household survey also showed continued strength with the number of unemployed persons falling by 281,000 leading to a further decline in the unemployment rate from 3.93% to 3.75%…the lowest since 1969!
The week ended on a high note with both the GDP and employment reports showing continued strength. Have a nice weekend!