Barclays economist Michael Gapen......>

US DATA REACT: Barclays economist Michael Gapen said "second estimate of Q2 US

GDP growth points to solid momentum" in US demand. At 3.0% q/q saar, the second

estimate revised growth higher by 0.4%, above our and consensus expectations

(Barclays: 2.6%; consensus: 2.7%). The upward revision to activity was driven

mainly by personal consumption and business spending. Personal consumption is

now reported at 3.3%, versus 2.8% previously, as both goods and services

consumption were revised higher. Durable goods received a large upward revision

to 8.9% q/q saar from 6.3% previously, reflecting the rebound in auto assemblies

and sales."

- He adds "business fixed investment was revised higher by 1.4pp to 3.6%, as

structures (to 6.2% from 4.9%), equipment (to 8.8% from 8.2%), and intellectual

property (to 4.9% from 1.4%) all received upward revisions. Residential

investment still showed a large decline, albeit slightly less at -6.5% from

-6.8% previously. Offsetting these upward revisions was govt spending, which now

show a modest 0.3% contraction versus a 0.7% rise previously" as federal plus

state and local spending were "revised lower."