CIBC Research discusses its reaction to today's US Q1 advance GDP report.

"GDP growth cooled to 1.1% annualized in the US in the first quarter, as a drop in inventory investment compounded declines in the interest-sensitive residential investment and business investment in equipment components. The advance was well below the 1.9% expected by the consensus, but the headline masked an acceleration in consumer spending, with both goods and services increasing, which added to growth in net exports and government spending," CIBC notes. 

"Final domestic demand, which removes inventories and net trade, showed a rebound to 3.2% annualized growth from 0.7% in Q4, while core PCE prices accelerated to 4.9% q/q annualized, which will keep the Fed on track for a final 25bp rate hike at next week's FOMC," CIBC adds.