U.S. Outlook: U.S. GDP rebounds to a respectable pace in Q2
The Bureau of Economic Analysis’s (BEA) advanced estimate of second quarter real GDP growth showed solid improvement over the first quarter performance, coming in at a 2.6% annualized pace.
For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on July 28.
- The rebound was driven by a marked improvement in real consumer spending growth to a 2.8% annualized pace from a 1.9% pace in Q1.
- The U.S. trade balance improved last quarter, adding almost two-tenths to U.S. GDP growth.
- The GDP data should give the FOMC the green light to continue on its normalization path and increases the odds of another rate hike from the Fed in December.
- We forecast Q3 GDP growth at 2.7% and 2017 annual GDP growth of 2.1%.