Real GDP came in as expected while the components indicate a strong recovery will continue

The headline number for second quarter economic growth came as expected but for much different reasons than forecast. The Advance Report for Real GDP resulted in 4.1% growth over the first quarter with the consensus forecast calling for 4.2%. This growth was the fastest since the third quarter of 2014. Growth is being fed by consumption with personal consumption expenditures increasing by 4% (as compared to forecasts of less than 3%), business fixed investment growing by 7.3% and government spending increasing by 2.1%.

 

PROBANK AUSTIN ADVISOR - JULY 31, 2018