The revised U.S. Q2 GDP data
The revised U.S. Q2 GDP data imply a trimming in Q2 productivity growth to 1.4% from 1.5% after a 0.1% pace in Q1, with output growth of a revised 3.9% (was 4.0%) in Q2 after a 1.8% Q1 pace. Analysts expect Q2 hourly compensation growth of 1.7% (was 1.8%) after a 4.9% Q1 rate. The mix should leave Q2 unit labor cost growth of an unrevised 0.2% after a 4.8% Q1 pace. Analysts expect personal income growth of 3.3% in Q3, after unrevised Q2 growth of 3.0% and a solid 5.6% clip in Q1, as income was pushed into 2017 from 2016 in anticipation of tax cuts. Disposable income growth is pegged at 2.9% in Q3 after rates of 3.6% (was 3.5%) in Q2 and 5.2% in Q1. The savings rate is likely falling to the 3.5% area in Q3 from 3.8% (was 3.7%) in Q2, 3.9% in Q1, and an expansion-low 3.6% in Q4. Analysts saw a 3-year high of 6.2% back in Q2 of 2015.