The second estimate for Q2 GDP growth was marked down to 2.1% (Briefing.com consensus 2.4%) from the advance estimate of 2.4%.
The GDP Price Deflator also got marked down to 2.0% (Briefing.com consensus 2.2%) from the advance estimate of 2.2%.
The PCE Price Index got revised lower to 2.5% from 2.6%, as did the core-PCE Price Index, which checked in at 3.7% versus the advance estimate of 3.8%.
Personal consumption expenditure growth was revised up to 1.7% from 1.6% and contributed 1.14 percentage points to growth.
Gross private domestic investment was revised down to 3.3% from 5.7% and contributed 0.57 percentage points to growth.
Exports declined 10.6% versus a 10.8% decline seen in the advance estimate. Imports declined 7.0% versus a 7.8% decline seen in the advance estimate. Net exports subtracted 0.22 percentage points from growth.
Government spending was revised up to 3.3% from 2.6% after increasing 5.0% in the first quarter and contributed 0.58 percentage points to growth.
The personal savings rate as a percentage of disposable personal income was 4.5% versus the advance estimate of 4.4%.
Real final sales of domestic product, which excludes the change in private inventories, was 2.2% versus 2.3% in the advance estimate.
The key takeaway from the report is that it fits the soft landing scenario; also, there were downward revisions to the inflation readings, which is something that will continue to drive the market's belief that the Fed can refrain from another rate hike.| Q2 | Q1 | Q4 | Q3 | Q2 | |
|---|---|---|---|---|---|
| GDP | 2.1% | 2.0% | 2.6% | 3.2% | -0.6% |
| Inventories (change) | -$1.8B | $3.5B | $136.5B | $38.7B | $110.2B |
| Final Sales | 2.2% | 4.2% | 1.1% | 4.5% | 1.3% |
| PCE | 1.7% | 4.2% | 1.0% | 2.3% | 2.0% |
| Nonresidential Inv. | 6.1% | 0.6% | 4.0% | 6.2% | 0.1% |
| Structures | 11.2% | 15.8% | 15.8% | -3.6% | -12.7% |
| Equipment | 7.7% | -8.9% | -3.5% | 10.6% | -2.0% |
| Intellectual Property | 2.2% | 3.1% | 6.2% | 6.8% | 8.9% |
| Residential Inv. | -3.6% | -4.0% | -25.1% | -27.1% | -17.8% |
| Net Exports | -$1212.2B | -$1208.4B | -$1238.6B | -$1268.8B | -$1430.5B |
| Export | -10.6% | 7.8% | -3.7% | 14.6% | 13.8% |
| Imports | -7.0% | 2.0% | -5.5% | -7.3% | 2.2% |
| Government | 3.3% | 5.0% | 3.8% | 3.7% | -1.6% |
| GDP Price Index | 2.0% | 4.1% | 3.9% | 4.4% | 9.0% |
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