US: Downward pressure on GDP? – TD Securities

Analysis team at TD Securities note that the US Q2 GDP data was revised slightly lower in the second update to 2.0% from 2.1% before, as expected.

Key Quotes

“The headline print, however, masks important shifts in its components as personal consumption increased more than initially penciled (4.7% vs. 4.3%), with that improvement being upset by the rest of the components. Notably, Q2 residential investment growth was revised even lower to -2.9% from -1.5%.”

“Separately, the update on core prices disappointed to the downside again, with the q/q annualized rate revised a tenth lower to 1.7%. This suggests a more subdued than expected path for inflation during the first half of the year.”