US GDP growth misses estimates in March; core PCE deflator in spotlight

26 April 2023

 

Summary: US GDP up 0.3% (1.1% annualised) in March quarter, below expectations; “ugly” headline figure driven by slower inventory growth; core PCE deflator up 4.9% (annual rate), above consensus; GDP price deflator rate slows from 6.4% to 5.3%. US GDP growth slowed in the second quarter of 2019 before stabilising at about 0.5% per quarter.  At the same time, US bond yields suggested future growth rates would be below trend....

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