The second reading on Q3 GDP
- GDP rose 1.9% in the advance reading
- The final Q2 reading was 2.0%
- Personal consumption 2.9% vs 2.8% exp (2.9% in prelim report)
- GDP price index 1.8% vs 1.7% exp
- Core PCE 2.1% vs 2.2% exp
- U S corporate profits down 0.8% y/y
Percentage contributions:
- Personal consumption added 1.97 pp vs 1.93 pp in advance report
- Gross private investment -0.01 pp vs -0.27 pp in advance report
- Inventories +0.17 pp vs -0.05 pp in advance report
- Net exports -0.11 pp vs -0.08 pp in advance report
- Government consumption +0.28 vs +0.35 pp in advance report
The better reading on investment is welcome but it looks to be on the residential side along with IP rather than broader business spending. The big swing in the data is the rise in inventories, which added 0.22 percentage points compared to the advance report -- all of the beat on consensus.
