US GDP grew 4.1% annualized in Q2, much better than prior quarter’s 2.0% but slightly missed expectation of 4.2%. GDP price index rose 3.0%, way above expectation of 2.3%. The growth was was highest since Q4 2014. But it’s way off the 5% finalized annual rate in Q3 2014, and can’t even match the 4.6% rate back in Q2 2014.
It’s noted in the release that “The acceleration in real GDP growth in the second quarter reflected accelerations in PCE and in exports, a smaller decrease in residential fixed investment, and accelerations in federal government spending and in state and local spending.” But “these movements were partly offset by a downturn in private inventory investment and a deceleration in nonresidential fixed investment. Imports decelerated.”
