US: Real GDP grows at an annual rate of 2% in Q1 vs. 1.3% expected

• The US BEA revised Q1 GDP higher to 2% from 1.3%.
• US Dollar Index rises above 103.00 after GDP and Jobless Claims data. 

The real Gross Domestic Product (GDP) of the US expanded at an annualized rate of 2% in the first quarter, the US Bureau of Economic Analysis' (BEA) final estimate showed on Thursday. This reading came in above the previous estimate and the market expectation of 1.3%. 

The BEA reported that GDP “was revised up 0.7 percentage point from the second estimate, reflecting upward revisions to exports, consumer spending, state and local government spending, and residential fixed investment that were partly offset by downward revisions to nonresidential fixed investment, federal government spending, and private inventory investment. Imports were revised down.”

Market reaction

The US Dollar Index rose following the report and the weekly Jobless Claims. The DXY climbed above 103.00, and it was up by 0.15% on the day, approaching daily highs.