1Q22 GDP: Final Reading Lower As Quarter Ends on Weak Note

Bottom Line:  The final reading of 1st Quarter GDP showed a slightly larger decline in economic activity than previously reported. Key categories like consumption and residential fixed investment were revised notably lower as late data was tallied, and the Quarter ended much weaker than it started. As the consumer struggled with higher prices for essential goods like gasoline, real final sales were revised lower, and final domestic demand, a key metric for assessing underlying trend growth, fell to just 2%. While that metric was still positive, the report shows the Quarter ended with a sharp deceleration in consumption. Of course, these data are old news, with the 2nd Quarter ending tomorrow. The Atlanta Fed's model for the 2nd Quarter stood at just 0.3%, but consensus Wall Street forecasts were still up at 3% this morning.