**MNI 5 THINGS: US Q2 GDP Unrevised At +4.2% As Expected>

--5 Things We Learned From The Third Estimate of Q2 GDP

By Kevin Kastner, Harrison Clarke, and Shikha Dave

     WASHINGTON (MNI) - The following are the key points from the third 

estimate of second quarter GDP data released Thursday by the Bureau of 

Economic Analysis: 

     - Second quarter GDP was unrevised at +4.2% SAAR as in the third 

estimate, in line with expectations. The GDP price index was unrevised 

at +3.0%, while the headline PCE price index, and core PCE price index 

were all revised upward by 0.1%. Analysts expect Hurricane Florence to 

have a negative impact on third quarter growth, with a post-hurricane 

rebound in the fourth quarter barring any other major storms. 

     - The alternative measure of real Gross Domestic Income was +1.6% 

revised down from +1.8% in the previous estimate, putting the average of 

the two measures at +2.9%, revised down from +3.0% previously. There is 

a clear divergence between GDP and GDI so far in 2018. 

     - Behind the lack of adjustment to headline GDP were mixed 

revisions to several measures. Nonresidential fixed investment was 

revised upward to +8.7% from +8.5% in the second estimate. PCE growth 

was unrevised from +3.8%, after a slight upward adjustment to goods 

spending and a slight downward adjustment to services spending. The 

savings rate was unrevised at 6.8%, still down from 7.2% in the previous 

quarter. 

     - The prices measures were generally unrevised, with the GDP price 

index still at +3.0%, while the closely watched core PCE was revised 

upward slightly to +2.1% from +2.0%, holding the y/y rate at +1.9%, 

still ahead of +1.7% in Q1. 

     - Real final sales of domestic product were revised upward to +5.4% 

vs +5.3% in second estimate. Final sales to domestic purchasers were 

revised upward to +4.0% from +3.9% in the second estimate. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$]