2Q adv GDP +2.6% vs +2.7% expected, while...>

US DATA: 2Q adv GDP +2.6% vs +2.7% expected, while 1Q GDP revised 

down to +1.2% from +1.4% previously, indicating a slower start to 2017 

after 2016 GDP rev dn to +1.5% from prev +1.6%. The core PCE price index 

was +0.9% in 2Q vs rev +1.8% in 1Q, for year/year rates of +1.5% 2Q 

(slowest since 4Q15) and +1.8% 1Q relative to the Fed's 2.0% target. 

Components for 2Q showed positive contributions from PCE (1.93 pp), 

nonres fixed (+0.64pp), net exports (+0.18 pp), and govt (+0.12pp). 

These were offset by negative contributions from residential investment 

(-0.27pp) and inventories (-0.02 pp). Real final sales +2.6% vs rev 

+2.7% in 1Q. GDP price index +1.0% vs +2.0% 1Q. See MNI main wire 

for more details on the 2Q data and the revisions in past years.