Among the notable items in the report :
— The headline contribution from consumer expenditures for goods was +0.05% (down -1.02% from the prior quarter).
— The contribution made by consumer services spending to the headline decreased to +1.26% (down -0.65% from the previous quarter). Healthcare spending provided about half of services growth. The combined consumer contribution to the headline number was 1.31%, down -1.67% from the prior quarter.
— Contracting commercial private fixed investments removed -0.40% from the headline number — down over a full percent (-1.12%) from the fourth quarter of 2014. This drop occurred in spending for structures, industrial equipment and IT equipment. Some growth was reported in transportation equipment and intellectual property.
— Inventory growth added +0.74% to the headline number (up +0.84% from the previous quarter). Once again it is important to note that this number has logically and historically been nearly zero-sum over extended time periods, and future mean reversion to the zero sum should be expected.
— Governmental spending removed -0.15% from the headline (up +0.20% from the -0.35% for the previous quarter). The contraction was largely the result of decreased state and local spending on infrastructure.
— Exports are now reported to be subtracting -0.96% from the headline growth rate (down -1.55% from the previous quarter).
— Imports subtracted substantially less from the headline number (-0.29%) than during the prior quarter (-1.62%) — also an expected consequence of the stronger dollar.
— The “real final sales of domestic product” is now contracting at a -0.49% annualized rate. This is the BEA’s “bottom line” measurement of the economy and it excludes the reported inventory growth.
