US DATA: Q2 real GDP +1.3%, Q1 rev down to +0.4%, both stunningly weak;
annual revs altered most other data. Q2 shows sharp deceleration in
consumption led by -4.4% durables (mainly autos) and a mere +0.1%
nondurs (high gas prices syphoned off other spending). Fedl govt +2.2%
and rising investment added; S&L govt -3.4% hurt. Commerce assumed
rising inventories and improved trade bal for missing data. GDP px +2.3%
GDP Components: Q3 Q4 Q1 Q2 prelim
Real growth +2.5% +2.3% +0.4% +1.3%
Real final sales +1.7 +4.2 +0.0 +1.1
PCE +2.6 +3.6 +2.1 +0.1
Nonres fixed invest +11.3 +8.7 +2.1 +6.3
Res fixed invest -27.7 +2.5 +2.4 +3.8
Net Exports Contrib cut 0.68 add 1.37 cut 0.34 add 0.58
Inventory Contrib add 0.86 cut 1.79 add 0.32 add 0.18