US Q2 2023 final GDP +2.1% vs +2.1% expected

<ul><li>The Q1 second <a href="https://www.forexlive.com/news/us-q2-gdp-second-look-21-vs-24-expected-20230830/" target="_blank" rel="follow">reading </a>was +2.1%</li><li>Final Q1 <a href="https://www.forexlive.com/news/us-final-q4-gdp-26-vs-27-expected-20230330/" target="_blank">reading </a>was +2.0% annualized</li><li>Q4 was +2.6% annualized</li></ul><p>Details:</p><ul><li>Consumer spending +0.8% vs +1.7% prelim</li><li>Consumer spending on durables % vs -0.3% prelim</li><li>GDP final sales +2.1% vs +2.2% prelim</li><li>GDP deflator +1.7% vs +2.0% prelim</li><li>Core PCE +3.7% vs +3.7% prelim</li><li>Exports -9.3% vs -10.6% prelim</li><li>Imports -7.6% vs -7.0% prelim </li><li>Business investment +5.2% vs +3.9% prelim</li><li>Corporate profits +6.9% vs -10.6% prelim</li></ul><p>Percentage point changes:</p><ul><li>Net trade pp +0.04 vs -0.12 pp prelim </li><li>Inventories 0.0 pp vs -0.09 pp prelim</li><li>Govt pp +0.57 vs +0.58 pp prelim</li></ul><p>The headline might lull you into thinking there's nothing notable here but the consumer was quite a bit weaker in the quarter while inflation was lower. Both of those things are notable for monetary policy going forward. Corporate profits were also much stronger.</p><p>The market is focused on the softer consumer data following the release with the US dollar and Treasury yields lower.</p>

This article was written by Adam Button at www.forexlive.com.