Today's U.S. GDP data
Today's U.S. GDP data imply a Q2 productivity growth boost to 3.1% from 2.9%, following a 0.3% rise in Q1, with an associated boost in output growth to 5.0% from 4.8% after a 2.6% Q1 pace. Analysts expect an unrevised 2.0% Q2 growth rate for hourly compensation after a 3.4% Q1 clip. The mix should leave a slightly revised Q2 unit labor cost figure of -1.1% from -0.9%, after a Q1 growth pace of 3.4%. Analysts expect hours-worked growth of 1.9% in Q2 after a 2.3% Q1 pace. Analysts saw a slight trimming in the Q2 personal income figures that left growth of 4.2% (was 4.3%) for total income and 4.4% (was 4.5%) for disposable income, following respective Q1 rates of 5.2% (was 5.1%) and a robust 7.0%. Analysts peg respective Q3 growth at 4.5% and 4.6%. Analysts're seeing strong disposable income growth because of tax cuts, though analysts saw a firm 4.0% (was 3.3%) growth rate for personal current taxes in Q2 after the hefty 7.7% contraction rate in Q1. Analysts assume a 3.6% growth rate for this measure in Q3. The savings rate sat at an unrevised 6.8% in Q2, after a Q1 bounce to 7.2% from 6.3% in Q4.