FINWIRES · TerminalLIVE
FINWIRES

US Q2 GDP Growth Unrevised From Advance Estimate, PCE Growth Revised Higher

By

US economic growth, measured by gross domestic product, rose by 1.5% in Q2, unrevised from the advance estimate released last month, as expected in a survey compiled by Bloomberg as of 06:10 am ET.

GDP rose by 2.1% in Q1.

Personal consumer expenditures rose by 3.4% after a 0.5% gain in Q1, an upward revision from a 3.2% increase in the advance estimate.

There was also a small upward revision to the contribution from nonresidential fixed investment, but downward revisions to the contributions from private inventories, net exports and government spending. There was no change to the contribution from residential fixed investment.

The GDP price index rose by 6.4%, revised up from a 6.2% gain in the advance reading after a 3.6% increase in the previous quarter, with the overall PCE and core PCE price measures growing faster than in the advance estimate.

The third estimate of Q2 GDP is scheduled to be released on Sept. 30.

The quarterly measure of gross domestic product, or GDP, is released by the US Bureau of Economic Analysis at three stages, with the advance reading about a month after the end of a quarter, followed by second and third readings for the same quarter two and three months after quarter-end.

The data are broken down by each of the GDP components: consumption, fixed investment (which includes residential and nonresidential investment and inventories), government spending, and net exports (exports minus imports). The report also includes prices measures for the overall reading and the categories.

Strong GDP growth is a positive for stocks, but a negative for bonds, especially if it is accompanied by sharp inflation gains.

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