Details from the Q2 2016 US advance GDP data report 29 July 2016
Q1 1.1%. Revised to 0.8%
- Personal consumption 4.2% vs 4.4% exp. Prior 1.5%. Revised to 1.6%
- PCE 1.9% vs 2.0% exp. Prior 0.2%. Revised to 0.3%
- Core PCE 1.7% vs 1.7% exp. Prior 2.0%. Revised to 2.1%
- GDP sales 2.4% vs 3.2% exp. Prior 1.3%
- Employment costs 0.6% vs 0.6% exp. Prior 0.6%
- Wages 0.6% vs 0.7% prior
- Benefits 0.5% vs 0.5% prior
- GDP deflator 2.2% vs 1.8% exp. Prior 0.4%. Revised to 0.5%
- Exports 1.4% vs -0.7% prior
- Imports -0.4% vs -0.6% prior
Ouch on the headline. Consumer spending near expectation may save this report from being an outright stinker.
So it's a bit of a mixed bag. The headline is way off expectations but consumer spending rose and prices held up, even taking into account the drop in the core. It's another sign that the US economy has many different levels and they're not all pulling in the same direction.
Trade was better in Q2 but structure investment was very poor in both residential and business sectors. Residential fell 6.1% vs 7.1% prior, business -7.9% vs 0.1% in Q1. Government spending fell 0.9% from its 1.6% gain in Q1.
Durable goods took up the baton for the jump in spending.
US GDP details
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
