Q2 adv GDP +4.1% vs +4.4% expected, up from.>

US DATA: Q2 adv GDP +4.1% vs +4.4% expected, up from an upward revised 

+2.2% (prev +2.0%) in Q1, as the GDP price index +3.0% vs +2.1% expected 

and +2.0% in Q1.

- The core PCE price index was +2.0% in Q2 after +2.2% in Q1, for 

year/year rate of +1.9% Q2 vs +1.7% Q1.

- The acceleration in growth was due to larger contributions from PCE 

(+2.69pp vs +0.36pp), net exports (+1.06pp vs -0.02pp), govt spending 

(+0.37pp vs +0.27pp). These were slightly offset by smaller contributions

from nonres fixed invest (+0.98pp vs +1.47pp) and a decline in 

inventories (-1.00pp vs +0.27pp). 

- When inventories were removed, real final sales of dom product +5.1% 

vs +1.9% in Q1. Final sales to domestic purchasers +3.9% vs +1.9% in Q1.

- Comprehensive annual revisions to the data were generally very mild, 

with only 0.1pp changes where they did occur. 2017 growth was revised 

down to +2.2% from +2.3%, but the quarter mixed changed with a strong 

upward adjustment to Q117, followed up downward adjustments in the other 

three quarter, especially a large 0.6pp downward adjustment to  Q417. 

- The savings rate slowdown of 2017, a major concern to many, was revised 

away due to new IRS data that shows under-reporting of proprietors' 

income of about $100b per year. With no change on average to outlays, 

there were upward adjustments to the savings rate in several recent 

years, with the rate for 2017 revised up to 6.7% from 3.3% previous.