Updated: 29-Aug-18 09:13 ET

Q2 GDP-Adv.

Updated: 29-Aug-18 09:13 ET

Highlights

• The second estimate for Q2 GDP checked in at 4.2% (Briefing.com consensus 4.0%) versus the advance estimate of 4.1%.
• The Q2 GDP Deflator also pushed up to 3.2% (Briefing.com consensus 3.0%) from the advance estimate of 3.0%.

Key Factors

• Real final sales of domestic product, which exclude the change in inventories, increased 5.3% versus 5.1% in the advance estimate.
• Gross private domestic investment increased 0.4% versus declining 0.5% in the advance estimate.
• Government spending increased 2.3% versus 2.1% in the advance estimate.
• Imports were down 0.4% after increasing 0.5% in the advance estimate. Net exports contributed 1.17 percentage points to GDP growth versus 1.06 percentage points in the advance estimate.
• The change in private inventories subtracted 0.97 percentage points from GDP growth after subtracting 1.0 percentage point in the advance estimate.

Big Picture

• The key takeaway from the report is that it included a downward revision to personal spending growth (from 4.0% to 3.8%) that was offset by a higher estimate for nonresidential investment growth, government spending, and a downward revision to imports, which are a subtraction in the calculation of GDP.

Category	Q2	Q1	Q4	Q3	Q2
GDP	4.2%	2.2%	2.3%	2.8%	3.0%
Inventories (change)	-$26.9B	$30.3B	$16.1B	$64.4B	$11.9B
Final Sales	5.3%	1.9%	3.2%	1.8%	2.8%
PCE	3.8%	0.5%	3.9%	2.2%	2.9%
Nonresidential Inv.	8.5%	11.5%	4.8%	3.4%	7.3%
Structures	13.2%	13.9%	1.3%	-5.7%	3.8%
Equipment	4.4%	8.5%	9.9%	9.8%	9.7%
Intellectual Property	11.0%	14.1%	0.7%	1.7%	6.6%
Residential Inv.	-1.6%	-3.4%	11.1%	-0.5%	-5.5%
Net Exports	-$843.7B	-$902.4B	-$899.2B	-$845.9B	-$844.1B
Export	9.1%	3.6%	6.6%	3.5%	3.6%
Imports	-0.4%	3.0%	11.8%	2.8%	2.5%
Government	2.4%	1.5%	2.4%	-1.0%	0.0%
GDP Price Index	3.0%	2.0%	2.5%	2.2%	1.2%