The U.S. Q2 GDP growth boost to 3.1% from 3.0%
The U.S. Q2 GDP growth boost to 3.1% from 3.0% matched our estimate, though consumption was a tad stronger than expected due to firmness in services, while fixed investment was a tad weaker due to hits for residential and intellectual property investment. Analysts saw the expected $3.7 B Q2 boost for inventories and smaller lifts for nonresidential construction and government purchases. Analysts saw a trimming in final sales growth to 2.9% from 3.0%. Analysts boosted our Q3 GDP growth estimate to 3.0% from 2.6% thanks to strong figures in the advance indicators report. The 2017 data show a huge $126.7 (was $130.4) B 9-quarter inventory downswing from the peak in Q1 of 2015 before the petro-downturn. Inventories have yet to bounce as the factory rebound absorbs excess capacity. The data still show solid growth in real consumption of 3.3% and a firm 6.7% (was 6.9%) pace for business fixed investment, though analysts saw a 7.3% (was 6.5%) residential construction drop that unwound a winter weather-boost, and trade has firmed in 2017.