Q1 GDP tracking estimate lowered by 0.4pp to 1.5% - Nomura

Analysts at Nomura offered an update to their Q1 GDP tracking based on the latest US data.

Key Quotes:

"The nominal PCE in January was up steadily, but PCE price indexes increased strongly. As a result, real PCE was soft, portending to less PCE in Q1. 

Moreover, construction spending data surprised to the downside, with a sharp decline in public construction spending, implying less government investment. 

Although private construction increased at a steady pace, the increase was not enough to offset a strong drag from weak public construction outlay."

"We lowered our Q1 GDP tracking estimate by 0.4pp from 1.9% to 1.5%."