Atlanta Fed says strong Q4 inventory growth will hurt Q1
What they had to say:
"The forecast for first-quarter real consumer spending growth increased from 3.1 percent to 3.5 percent following this morning's personal income and outlays release from the U.S Bureau of Economic Analysis (BEA). This was more than offset by a downward revision of the contribution of inventory investment to first-quarter real GDP growth from 0.2 percentage points to -0.4 percentage points after this morning's GDP release from the BEA."
Inventories don't truly add or subtract from GDP, they just move around the timeline.
Here are the details of today's Q4 GDP report.
