Analysts were looking for 1.5%, so this beats expectations. But last quarter’s -5.5% has been revised down to -6.4%. That’s a bad sign — we want to see upward revisions.
This is, of course, just the first Q2 reading and we’ve got several revisions going forward.
Stock futures had been heading higher, but have sold of sharply and are now pointing lower.
From the full release:
The decrease in real GDP in the second quarter primarily reflected negative contributions from
nonresidential fixed investment, personal consumption expenditures (PCE), residential fixed investment,
private inventory investment, and exports that were partly offset by positive contributions from federal
government spending and state and local government spending. Imports, which are a subtraction in the
calculation of GDP, decreased.
The much smaller decrease in real GDP in the second quarter than in the first primarily reflected
much smaller decreases in nonresidential fixed investment, in exports, and in private inventory
investment, upturns in federal government spending and in state and local government spending, and a
smaller decrease in residential fixed investment that were partly offset by a much smaller decrease in
imports and a downturn in PCE.
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