The US Q1 GDP growth had crashed!

Let's break down the GDP numbers to see what had happened.

GDP growth = G + I + C + NE

Q1 GDP (1st estimate) = (-0.25) + 3.6 + 1.21 + (-4.83) = -0.27 (-0.3)

Q1 GDP (2nd estimate) = (-0.12) + 3.98 + 0.8 + (-4.9) = -0.24 (-0.2)

Q1 GDP (Final estimate) = (-0.1) + 3.9 + 0.31 + (-4.61) = -0.5

We can see from the breakdown that the Q1 GDP (final) had a significant decline in consumption (C) compared to the previous 2 estimates.

We also could see that the government spending (G) had been negative (contracting) and this showed that the government had no money left in its coffer.  It would have to raise more money to boost its economic growth and this would cause the USD to be weak.  Another thing to note is the core PCE (3.5) which is way above the fed target (2).  Therefore, STAGFLATION is a real possibility now!