Know The Difference Minute

GDP shrank by 1.6% on an annualized basis in Q1, higher than April’s initial report.

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It’s official.
Welcome to the Know the Difference Minute for Wednesday, June 29th.
No shortage of recession stories: wondering if we are in a recession, about to enter a recession, or 6 months away from a recession.
If there is a when, that’ll be decided by looking in the rear-view mirror. One piece of the ‘why’ puzzle came today in the form of the final revision of first-quarter GDP. In it, we saw GDP shrank by 1.6% on an annualized basis in Q1, higher than April’s initial report.
So it’s officially-official as the first drop in GDP since the second quarter of 2020 when the US was deep in the COVID recession but before the economy grew 6.9% to finish 2021.
We’ll be closely watching tomorrow’s Personal Consumption Expenditures price index to get a handle on consumer spending. Its one of the Federal Reserve's preferred measures of inflation.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.