Latest / Markets with Megan: A Quick Financial Markets Update / 0.2% Drop: Should We Worry? | S2 E048 | 05-29-25

Transcript

0.2% Drop: Should We Worry? | S2 E048 | 05-29-25 · Markets with Megan: A Quick Financial Markets Update

• 0:00
  Megan Horneman: Well, the first reading wasn't too much better than the second reading.
• 0:03
  Megan Horneman: It's Thursday, may the 29th, and this is Markets with Megan.
• 0:06
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• 0:08
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• 0:11
  Megan Horneman: But we're here today to give you some information we received on the first quarter GDP report and this is the second reading that we got today.
• 0:19
  Megan Horneman: Typically, we get three readings that are released to the market and what we saw today is that GDP contracted, even though it was a little bit better than the first reading.
• 0:33
  Megan Horneman: Gdp contracted in the first quarter by 0.2%.
• 0:34
  Megan Horneman: The first reading was 0.3%.
• 0:35
  Megan Horneman: So let's talk about a little bit about what those revisions, where they primarily came from.
• 0:40
  Megan Horneman: So we did see a weaker consumer.
• 0:43
  Megan Horneman: The consumer spent at about 1.2% annualized pace.
• 0:48
  Megan Horneman: That was slightly less than was originally reported at 1.8%.
• 0:53
  Megan Horneman: We saw that gross private investment this is where you get investment in real estate, in structures, in equipment, intellectual property.
• 1:01
  Megan Horneman: We actually saw that go up primarily in the equipment space.
• 1:05
  Megan Horneman: So this might have been businesses spending ahead of the anticipated tariffs.
• 1:10
  Megan Horneman: But where we got some again, where this was negative on the report was we got a bigger import number and remember imports subtract from GDP.
• 1:19
  Megan Horneman: Exports were slightly higher, but not enough to outweigh the big increase we saw in imports.
• 1:24
  Megan Horneman: Imports were expected at 41.3%.
• 1:28
  Megan Horneman: That was the first reading.
• 1:29
  Megan Horneman: They actually came in rising 42.6% for the quarter and again, that's probably spending ahead of the anticipated tariffs.
• 1:37
  Megan Horneman: Government conception was a little bit better.
• 1:40
  Megan Horneman: It's still contracted, though, at 0.7%, and we saw that that final sales to domestic purchasers, so that takes out a lot of the noise when it comes around trade.
• 1:49
  Megan Horneman: That actually was revised lower from 2.3% to 2%.
• 1:54
  Megan Horneman: So what we saw here is that we did get the first negative reading since the first quarter of 2022.
• 2:02
  Megan Horneman: We'll see the third reading if this stays in a negative pace.
• 2:05
  Megan Horneman: But we do know the economy is slowing and we're in the depths of what we anticipate to be the weakest part of GDP for 2025.
• 2:13
  Megan Horneman: That's all we have today.
• 2:14
  Megan Horneman: If you'd like to see a history of our podcast, you can go to marketswithmegan.
• 2:17
  Megan Horneman: fm.
• 2:18
  Megan Horneman: Thank you.