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Real GDP Beats in Q2, In Line With GDPNow

US DATA
  • Real GDP increased 2.4% annualized (cons 1.8%, Atlanta Fed GDPNow 2.4%) in the first Q2 reading after +2.0% in Q1.
  • The beat is helped by Personal consumption rising 1.6% (cons 1.2%) after 4.2% in Q1 but with implied stronger than expected components elsewhere.
  • “Compared to the Q1, the acceleration in GDP in the Q2 primarily reflected an upturn in private inventory investment and an acceleration in nonresidential fixed investment. These movements were partly offset by a downturn in exports, and decelerations in consumer spending, federal government spending, and state and local government spending. Imports turned down.”

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