FINWIRES · TerminalLIVE
FINWIRES

Daily Roundup of Key US Economic Data for Aug. 26

By

The second estimate of Q2 GDP showed a 1.5% gain, unrevised from the advance estimate and following a 2.1% gain in the previous quarter.

Personal spending was revised up to a 3.4% gain from 3.2% in the advance estimate and was well above a 0.5% gain in the previous quarter.

There was also an upward adjustment to nonresidential fixed investment but downward adjustments to inventories, net exports and government spending. The contribution from residential fixed investment was unchanged.

The GDP price index rose by 6.4% after a 3.6% gain in the previous quarter, an upward revision from a 6.2% increase in the advance estimate. The PCE price index and core PCE price measures were also revised higher from the advance estimate.

Personal income was rose by 0.4% in July after a 0.2% gain in June, while personal consumption expenditures rose by 0.2% in July after a 0.3% increase in June.

Real PCE was flat in July after adjusting for a 0.2% increase in the PCE price index, down from a 0.4% gain in June when the price index fell by 0.1%.

Core PCE prices rose by 0.2% after a 0.1% gain in June. The year-over-year rates for both the overall and core price measures held steady at 3.7% and 3.3%, respectively.

Durable goods new orders rose by 1.1% in July, while shipments increased by 1.1%. Excluding transportation, new orders were up 0.4%, and shipments rose by 0.8%, suggesting underlying growth outside of the volatile transportation component.

The Mortgage Bankers Association reported a 1% decline in mortgage applications in the week ended Aug. 21 after a 0.4% dip in the previous week. Refinancing activity and new home applications both declined due to a slight uptick in mortgage rates.

Total crude oil inventories fell by 3.6 million barrels in the week ended Aug. 21, with commercial oil inventories up 100,000 barrels and stocks in the US Strategic Petroleum Reserve down 3.7 million barrels. Gasoline inventories and distillate inventories both decreased last week.

The Q3 GDP nowcast estimate from the Atlanta Fed is for a 4.6% gain, up from the previous estimate of a 4.0% gain.

Related Articles

International

Market Chatter: Car Production in Thailand Rises 6.12% in July, Lifted by Electric Vehicles

Automotive production in Thailand rose 6.12% in July to 117,383 units, driven by the production of electric passenger cars, which shot up 271% to 13,422 units, media reports said on Tuesday, quoting data from the Federation ​of Thai Industries.The growth in July follows a year-on-year fall of 7.55% in June.Domestic car sales ​rose 20.07% in July compared to a growth of 17.3% in ⁠June, while exports in July grew 2.4% from a drop of ​7.45% seen in the preceding month, according to the FTI.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

^SET
International

New Zealand New Residential Mortgage Lending Falls in July

Total new residential mortgage lending in New Zealand fell to NZ$7.85 billion in July from NZ$8.45 billion in June, according to data from the Reserve Bank of New Zealand released on Wednesday.Residential mortgage lending to first home buyers fell to NZ$1.58 billion in July from NZ$1.6 billion in the previous month. Lending to other owner-occupiers decreased to NZ$4.68 billion from NZ$5.1 billion.Residential mortgage lending to investors fell to NZ$1.48 billion from NZ$1.65 billion, while that for business purposes increased to NZ$109 million from NZ$95 million.Total new residential lending at a loan-to-valuation ratio above 80% came in at NZ$1.26 billion in July for all borrower types, down from NZ$1.27 billion in June.Residential mortgage lending, where the loan-to-valuation ratio is equal to or below 80%, was NZ$6.59 billion for all borrower types, down from NZ$7.18 billion in the previous month.

^NZ50
International

Westpac-Melbourne Institute Leading Index Rises in July

The six-month annualized growth rate in the Westpac-Melbourne Institute Leading Index rose to negative 0.2% in July from negative 0.4% in June, showing that the momentum is running below trend but is not particularly weak, according to a report released Wednesday.The index indicates the expected pace of economic activity in comparison to the trend for the next three to nine months.The July update is the seventh consecutive below-trend read on the leading index growth rate, but momentum has slightly improved since mid-year, said Matthew Hassan, Westpac's Head of Australian Macro-forecasting.Gross domestic product growth is expected to remain positive in the upcoming quarters, although per capita growth may run close to flat.The sub-trend leading index growth signal is mainly driven by financial conditions and the labor market, while other components show mixed contributions, he said.The Reserve Bank is anticipated to leave the cash rate unchanged, but it is prepared to lift again if high inflation is showing signs of persistence, Hassan added.

ASX 200