U.S. Q2 GDP was revised up to a 4.2% growth rate
U.S. Q2 GDP was revised up to a 4.2% growth rate, better than expected, from 4.1% in the Advance report and a 2.2% clip in Q1. Last quarter's consumption pace was bumped down to 3.8% from 4.0% previously and following a 0.5% pace in Q1. But business fixed investment was boosted to 6.2% versus the prior 5.4% reading, though slower than Q1's 8.0%, with Q2 nonresidential spending up 8.5% versus the advance print of 7.3%, while residential spending was revised down to -1.6% versus -1.1%. Government consumption was nudged to 2.3% from the prior 2.1% Q2 rate. Inventories subtracted $57.2 B (-0.97%) from the -$58.2 B (-1.0%) in the advance report and after adding $14.2 B in Q1 (0.27%). Net exports contributed $58.7 B (1.17%) versus the prior reading of $52.5 B (1.06%) and versus -$3.1 B in Q1 (-0.02%). The Q2 GDP chain price index was steady at 3.0%, and versus 2.0% in Q1, with the Q2 core rate unchanged at the prior 2.0%, and versus Q1's 2.2%.