Highlights of the revisions of the second quarter GDP report from the US Bureau of Economic Analysis:

  • First estimate was 4.0%
  • Personal consumption 2.5% vs 2.4% exp
  • Core PCE 2.0% vs 2.0% exp
  • GDP deflator 2.2% vs 2.0% exp

The headlines are a bit stronger but most of that was priced in after durable goods earlier in the week. The better news is some strong revisions in business investment, which is a great sign going forward:

  • Business investment +8.4% vs +5.5% previously
  • Equipment +10.7% vs +7.0% previously
  • IP/software +4.4% vs +3.5% previously


There are more reasons for the Fed to make a hawkish shift here.

Bloomberg’s report on the report is up now.