US Q2 advance GDP +2.4% vs +1.8% expected

<ul><li>Final Q1 <a href="https://www.forexlive.com/news/us-final-q4-gdp-26-vs-27-expected-20230330/" target="_blank" rel="follow">reading </a>was +2.0% annualized</li><li>Q4 was +2.6% annualized</li></ul><p>Details:</p><ul><li>Consumer spending +1.6% vs +4.2% prior</li><li>Consumer spending on durables % vs +16.3% prior</li><li>GDP final sales +2.3% vs +1.4% expected</li><li>GDP deflator +2.2% vs +3.0% expected</li><li>Core PCE +3.8% vs +4.0% expected (4.9% prior)</li><li>Exports -10.8%</li><li>Imports-7.8%</li><li>Business investment +4.9%</li></ul><p>Percentage point changes</p><ul><li>Net trade -0.12 pp vs +0.58 pp in Q1 </li><li>Inventories +0.14 pp vs -2.14 pp in Q1</li><li>Govt +0.06 pp vs +0.85 pp in Q1</li></ul><p>The early prints are GDP are market movers but it's a bit of a fool's errand. The consensus on Q1 GDP when it was released was 2.0% and the market freaked when it came in at 1.1%. In the weeks ahead, it was revised to exactly 2.0%. Today's reading will be similarly revised as more data comes in.</p><p>On the details, the market was more optimistic about the Q1 numbers than the headlines indicate because there was such a large inventory draw. Some of that is normalization post-covid but there was also de-stocking ahead of an anticipated recession that could reverse in the quarters ahead.</p><p>Total nominal US GDP is now $26.84 trillion.</p>

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