The US economy grew by an annualized 1.3% on quarter in Q1 2023, slightly higher than 1.1% in the advance estimate and market forecasts of 1.1%. Private inventory investment subtracted 2.1 pp from the GDP, slightly less than a 2.3 pp drag in the advance estimate. Also, consumer spending growth accelerated more than expected to 3.8% (vs 3.7% in the advance estimate) despite stubbornly high inflation. Upward revisions were also seen for nonresidential fixed investment growth (1.4% vs 0.7%) and public spending (5.2% vs 4.7%). On the other hand, residential fixed investment shrank at a faster pace (-5.4% vs -4.2% in the advance estimate). Net external demand has also contributed positively to the GDP as exports rose more than imports. Despite the upward revision, Q1 2023 GDP growth remains the weakest since Q2 2022.
