U.S. first-quarter gross domestic product growth was only 1.6%, far weaker than the 2.6% growth that investors had been expecting, and inflation as measured by personal consumption expenditures (PCE) for the period was higher than expected. That is an ugly mix for the economy, but the report may not be as bad as it seems.
Yung-Yu Ma, the chief investment officer of BMO Wealth Management, tells Forbes Newsroom that “when you look under the hood of the GDP report, it’s actually quite healthy.” He cites consumer and business spending as positives and says inventory and trade elements that depressed the Q1 results were volatile and were unlikely maintain pressure on growth in coming quarters.
Watch the full interview above.
