**RPT - MNI DATA IMPACT: US Q2 GDP Rev Down To +2.0%>

--Downward Revision For Net Exports, Inventories 

--Core PCE, Government Spending Revised Down From Advance Estimate

--Initial Jobless Claims Up 4k to 215k in Aug 24 Wk

By Brooke Migdon and Alexandra Kelley

     WASHINGTON (MNI) - Second quarter GDP was revised down to a 2.0% 

pace of growth from the 2.1% advance estimate, as expected by MNI and 

Bloomberg surveys. 

     Also released at the same time, initial claims increased by 4,000 

to 215,000 in the August 24 week, also in line with the expectations of 

Bloomberg and MNI. 

     Here are some of the key takeaways from the data released on 

Thursday: 

     - The GDP price index was unchanged at 2.4%, while the core PCE 

price index was revised down slightly to a 1.7% reading from 1.8% in the 

advance estimate. The year/year rate for the core PCE measure was 

revised down to 1.5% from 1.9% in the advance estimate. 

     - The key factors in the downward adjustment were a wider net 

export gap and a downward revision to private inventory growth. 

Residential investment was also revised down to -2.9% from -1.5% in the 

advanced estimate, while nonresidential fixed investment remained 

unchanged at -0.6%.

     - There was an offsetting upward revision to PCE, which MNI had 

anticipated due to strong retail sales and services spending data. 

Government spending was revised down to 4.5% from 5.9% in the advance 

estimate.

     - Final sales to domestic purchasers were revised up to a 3.6% 

pace from the 3.5% rate in the advance estimate, up significantly from 

the 1.8% pace set in the first quarter of 2019.

     - The initial claims data reflect a 4,245 increase in unadjusted 

claims, when seasonal factors had expected a 1,266 increase in the 

current week. The largest unadjusted gain was in New York (+4,564), 

while large declines were seen in Maryland (-383) and California (-432).

     - The four-week moving average for claims fell marginally by 500 to 

214,500 in the August 24 week and would be hold relatively steady next 

week as the 212,000 level in the August 3 week rolls out. 

     - Continuing claims increased by 22,000 to 1.698 million in the 

August 17 employment survey week, but the four-week average held 

relatively steady, decreasing by 250 to 1.697 million. 

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

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