US GDP to grow by 1.5% in Q1 - Barclays

The Barclays Research Team offers its thoughts on today’s US first-quarter GDP report slated for release at 1230 GMT.

Key Quotes:

“We expect Q1 GDP to grow by 1.5% q/q saar, representing a slowdown from Q4.

Incoming data during the quarter have suggested less momentum in activity, especially household spending on durables. In addition, some of the shortfall in Q1 growth is likely to be statistical - residual seasonality continues to hamper the BEA's estimate of Q1 data.

We look for private consumption growth to rise by 1.0% q/q saar, and expect the drag from net exports to be almost fully offset by higher inventory accumulation.”