BEA's second estimate showed real GDP contracted 1.5% in Q1,little changed from the advance estimate of-1.4%.However,the first estimate of real Gross Domestic Income shows GDI grew 2.1% in the quarter.The average of GDP and GDI,a supplemental measure of US economic activity,advanced 0.3%,suggesting the economy did not contract during the quarter.Profits declined 8.7% in Ql,less than we expected,and are now little boosted by subsidies.An upward revision in personal taxes,based on collections through the spring tax season,resulted in a sharp downward revision in personal disposable income and the saving rate which,in April,fell to 4.4%,measurably below the pre-pandemic level(more below).
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