Prior quarter -0.5%GDP 3.0% versus 2.4% estimate.GDP sales 6.3% much stronger than the 2.5% estimate. Last quarter -3.1%GDP consumer spending 1.4% versus 0.5% last quarterCore PCE 2.5% versus 2.3%.PCE prices 2.1% versus 2.9% estimatePCE Ex food, energy, and housing 2.2% versus 3.5% last quarterPCE services excluding energy and housing 2.3% versus 4.3% last quarter
The Atlanta Fed GDP now growth estimate rose to 2.9% from 2.4% yesterday in its final reading.
If you take out trade (added 0.5%) and inventory, the data is less strong than first look.
Net exports were the largest driver of growth, as declining imports improved the trade balance. Trade added 5 bps to GDP.
Consumer spending rose modestly (+1.4%), with gains in both goods and services. The first quarter was at 0.5%
Private domestic demand (real final sales) slowed to 1.2% annualized, down from 1.9% in Q1.
Investment was weak overall—residential investment plunged ~10%, partially offset by strength in tech and intellectual property.
Inventories detracted from growth after boosting Q1 GDP, as firms unwound stockpiles.
Overall, the report paints a picture of an economy benefiting from temporary trade dynamics rather than broad-based domestic strength heading into the second half of the year.
MORE: According to Nick Timiraos of the WSJ, real final sales to private domestic purchasers, which is a gauge of, advanced 1.2% which is a moderate figure, but the lowest since 2022.
This article was written by Greg Michalowski at investinglive.com.