Prior estimate 3.0%GDP 2nd revision 3.3% vs 3.1% estimateSales Preliminary Q2 6.8% vs 6.3% lastConsumer spending Prel. 1.6% vs 1.4% lastGDP deflator 2.0% vs 2.0% estimate. Last 2.0%Core PCE Prices prelim. 2.5% vs 2.6% est. Last 2.5%PCE prices preliminary 2.0% vs 2.1% preliminaryPCE ex food and energy housing 2.2% versus 2.2% preliminaryPCE Services ex energy and housing 2.1% vs 2.3%
Contributors to the 3.3% growth:
Consumer spending +1.07%Investment -2.70%Government -0.03%Net trade +4.95%
How did the 2nd quarter compare to the 1st quarter?
Consumer spending +0.31%.Investment +3.9%.Government +0.10%.Net trade -4.61%
The declines in the components in the Q1 were gains in Q2 with tariff impact evident. Inventories, a key part of investment showed a gain of 2.59% in the 1st quarter as companies increased imports, while inventories declined -3.29% in the 2nd quarter.
In the 1st quarter imports contributed a negative -4.66% to GDP (imports are a negative contribution to US GDP). In the 2nd quarter imports added 5.09% as the import surge declined.
The data is old news better and quarter data makes the start point for the current quarter a higher level.
US stocks are marginally higher:
Dow industrial average up 80 pointsS&P up 3.35NASDAQ index up 3.15%
This article was written by Greg Michalowski at investinglive.com.