USA revised upwards the GDP for the second quarter, until the 3% year-on-year, compared with the first reading of 2.8%, according to data from the Commerce Department’s Bureau of Economic Analysis. The revision was higher than analysts had expected, who had expected it to remain unchanged at 2.8%.
The reading known this Thursday “is based on more complete source data than those available for the ‘advance’ estimate published last month,” and increases thethe growth rate of the US economy due tomainly, to “an upward revision of“consumer spending.”
Compared to second quarter 2023 levels, GDP growth reflected “increases in consumer spending, l“private investment in inventories and non-residential fixed investment”. Imports, which are a subtraction in the calculation of GDP, increased.
In this way, the US economy has accelerated more than initially thought since the first quarter, a period in which GDP grew by 1.4%. This improvement is due to “a private investment in inventories rebounds and an acceleration in consumer spending, which were partially offset by a slowdown in residential fixed investment.”
US growth: analysts’ perspective
The gross domestic purchase price index rose 2.4% in the second quarter, one-tenth more than the previous estimate. Meanwhile, The PCE price index rose 2.5%, after being revised downwards by 0.1 pointsas was the case with the underlying inflation indicator, which saw its growth reduced to 2.8%.
The Personal income in current dollars increased by 233.6 billion in the quartera downward revision of $4 billion from the previous estimate. Disposable personal income, meanwhile, increased by $183 billion, or 3.6%, after being revised downward by $3.2 billion.
Bret Kenwellinvestment analyst at eToro, stresses that “after a mediocre first quarter, revised GDP growth in the second quarter remained strong, which helped reassure investors that the economy is not faltering”.
“Despite the upward revision of the second quarter, The Federal Reserve is unlikely to change its plans to cut rates at next month’s meetingafter Chairman Powell made clear that the time has come to shift policy toward lower rates. This is because the Federal Reserve is looking at a set of data, not a single indicator, and will not alter its plans based on any particular report,” he explained.
Unemployment data
The orders report was also published this Thursday. unemployment for the week ending August 24, which have fallen to 231,000down 2,000 from the previous seven-day level, which was revised up to 233,000 units, according to data from the US Department of Labor. This figure was slightly below the 232,000 requests anticipated by the consensus.
The unemployment rate was 1.2%, unchanged from the previous week, and the number of unemployed workers rose to 1,868,000, an increase of 13,000 compared to the previous period.
The higher unemployment rates were recorded in New Jersey (2.8%), Rhode Island (2.5%), California (2.2%), Puerto Rico (2.1%), Minnesota (2.0%), Connecticut (1.8%), Massachusetts (1.8%), Pennsylvania (1.8%), Nevada (1.7%), New York (1.7%), and Washington (1.7%).
The largest increases in initial claims occurred in Florida (+2,153), California (+979), Indiana (+854), South Carolina (+645) and Virginia (+408), while the largest decreases They took place in Michigan (-2,847), Texas (-1,952), New Jersey (-1,010), Georgia (-979) and Puerto Rico (-779).
Analysts of Oxford Economics They say that “after being inflated by weather and seasonal factors in July, initial jobless claims in August are stabilizing at a slightly lower level, Another indication that layoffs remain low”.
Source: Ambito
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