US Q2 GDP (third reading) 4.6% vs 4.6% expected

Highlights of the third estimate of US Q2 GDP from the US Bureau of Economic Analysis:

  • Largest rise since Q4 2011
  • The second reading of GDP was previously revised to 4.2% from 4.0%
  • Consumption 2.5% vs 2.9% exp
  • Prior consumption was +2.5%
  • Durables +14.1% vs +14.3% prior
  • Business investment +9.7% vs +8.4% prior
  • Home investment +8.8% vs +7.2% prior
  • Business investment in structures +12.6% vs +9.4% prior

Trade:

  • Exports +11.1% vs +10.1% prior
  • Imports +11.3% vs +11.0% prior

On the inflation side:

  • Core 2.0% vs 2.0% exp
  • Prior core PCE was 2.0%
  • GDP deflator 2.1% vs 2.1% exp
  • Prior GDP deflator was 2.2%

Inventories and corporate profits:

  • Inventories +$84.8B vs +$83.9B prior
  • Inventories added 1.42 percentage points to GDP
  • Corporate profits up 8.6% vs 8.3% prior
GDP 2