FINWIRES · TerminalLIVE
FINWIRES

US Q1 GDP Rises Less Than Expected, PCE Growth Slows

By

-- US economic growth, measured by gross domestic product, rose by 2.0% in Q1 after a 0.5% gain in Q4, slower than a 2.3% increase expected in a survey compiled by Bloomberg as of 7:35 am ET.

Personal consumer expenditures rose by 1.6% after a 1.9% gain in Q4.

There were positive contributions from nonresidential fixed investment, inventory growth and government spending that were partially offset by negative contributions from residential fixed investment and net exports.

The GDP price index rose by 3.6% after a 3.7% gain in the previous quarter, but the PCE measures accelerated.

The second estimate of Q1 GDP is scheduled to be released on May 28.

The quarterly measure of gross domestic product, or GDP, is released by the US Bureau of Economic Analysis at three stages, with the advance reading about a month after the end of a quarter, followed by second and third readings for the same quarter two and three months after quarter-end.

The data are broken down by each of the GDP components: consumption, fixed investment (which includes residential and nonresidential investment and inventories), government spending, and net exports (exports minus imports). The report also includes prices measures for the overall reading and the categories.

Strong GDP growth is a positive for stocks, but a negative for bonds, especially if it is accompanied by sharp inflation gains.

Related Articles

Australia

Rothschild & Co Redburn Adjusts American Express Price Target to $350 From $360, Maintains Buy Rating

Price: $318.05, Change: $+2.40, Percent Change: +0.76%

$AXP
Australia

RBC Raises Price Target on UMB Financial to $142 From $138, Keeps Outperform Rating

UMB Financial (UMBF) has an average rating of buy and mean price target of $145.77 according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $124.79, Change: $+0.56, Percent Change: +0.45%

$UMBF
Research

Research Alert: Rcl: Strong Q1 Beat On Demand Strength; Lowers Full-year Guidance

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:RCL reported Q1 adjusted EPS of $3.60, up 33% Y/Y and significantly beating the $3.20 consensus estimate. Total revenue of $4.45B, up 11%, was in line with consensus, while onboard revenue surged 14% and net yields grew 2% excluding currency effects. In our view, the strong onboard spending result signals consumer willingness to spend and reflects RCL's effective push to capture destination spending through private island destinations and targeted marketing. Management lowered 2026 adjusted EPS guidance this quarter to $17.10-$17.50, from $17.70-$18.10, citing higher fuel costs and geopolitical impacts. We believe the 300bps expansion in adjusted EBITDA margins to 38% showcases the operational leverage inherent in the business model, with net cruise costs excluding fuel rising only 0.6% in constant currency. The company's strong balance sheet with $6.9B liquidity and $1.1B returned to shareholders this quarter demonstrates its continued ability to invest in growth while rewarding shareholders.

$RCL