The third and final cut for the 2Q GDP
- The final US 2Q GDP came in slightly better than expected at -31.4% vs. -31.7% estimate
- prior estimate came in at -31.7%
- US exports -64.4% vs. -63.2% previous
- imports -54.1% vs. previous -54.0%
- business inventories change cuts 3.5 percentage points from GDP with a $-287 billion vs. $-286.4 billion
- consumption -33.2% vs. -34.1% previous
- private investment -46.6% vs. -46.2% previously
- government +2.5% vs. +2.8% previously
- GDP price index came in at -1.8% vs. -2.0% estimate. Last -2.00%
- core PCE quarter on quarter came in at -0.8% vs. -1.0% estimate. Last -1.0%
The worst GDP on record but it is old news now. The 3Q will see a rebound in the data. but traders might not be influenced by the numbers until the 4th quarter data (if there is no further shutdowns) .
Remember the US GDP is annualized. So GDP did not decline by -31.4% on the quarter but would have declined by that amount if the trend continued for 4 quarters (annualized).
