U.S. Final Q1 GDP, Durable Goods Orders, And Initial Jobless Claims Reports Showed Weaknesses
The final reading for Uncle Sam’s growth in the first quarter of 2024 came in at 1.4%, higher than the second estimate of 1.3% but still below the advanced reading of 1.6%.
Data from the Bureau of Economic Analysis indicate that weakness in primary metals (for durable goods manufacturing) and petroleum and coal products (for nondurable goods manufacturing) among goods-producing industries led to lower contributions to GDP.
In the private service production sector, the main sectors contributing to the increase were retail trade (led by automobile and spare parts dealers), finance and insurance (led by Federal Reserve banks, credit intermediation, and related activities), and health care and social assistance (led by outpatient health care services). .
Link to Bureau of Economic Analysis’s final GDP estimates
Below are details of GDP contributions by industry group:
In a separate report, core durable goods orders in the United States rose 0.1% on a monthly basis in May, slower than April’s 0.6% gain but higher than the expected 0.5% decline.
Orders for more closely watched core durable goods surprisingly fell by 0.1% on a monthly basis after a 0.4% increase in April and contrary to estimates of a 0.2% increase.
Link to the Census Bureau’s durable goods report
Meanwhile, weekly initial jobless claims data fell from 239,000 to 233,000 in the week ending June 22, and came in below the expected reading of 236,000. However, it also showed the four-week average rising by 3K from the previous week’s average.
Link to Department of Labor data on unemployment claims
Market reactions
US Dollar vs Major Currencies: 5 minutes
Comparison between the US dollar and major currencies Chart by TradingView
The downward pressure from the Asian session lost momentum and was partially reversed during the European session, enabling the US dollar to trade in ranges ahead of the release of data from the middle segment of the US economy.
The US dollar fell sharply and fell to its lowest levels of the day upon the release of the reports. But the downward moves were soon reversed, likely due to traders liquidating their positions ahead of the US core PCE price index on Friday.
The dollar concluded today’s trading mostly unchanged against most of its counterparts, with the exception of the euro and the British pound, which rose 0.21% and 0.12% against the dollar, respectively.
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