US GDP grew 2.4% annualized in Q2, according to the “advance” estimate, well above expectation of 1.6%. That’s also a faster growth than Q1’s 2.0% annualized. PCE price index slowed from 4.1% to 2.6% while PCE core price index also fell form 4.9% to 3.8%.

BEA said: “Compared to the first quarter, the acceleration in GDP in the second quarter primarily reflected an upturn in private inventory investment and an acceleration in nonresidential fixed investment. These movements were partly offset by a downturn in exports, and decelerations in consumer spending, federal government spending, and state and local government spending. Imports turned down.”

Full US GDP release here.

Also released, in June, durable goods orders rose 4.7% versus expectation of 1.0%. Ex-transport orders rose 0.6%, versus expectation of 0.1%. Goods trade deficit narrowed to USD -87.8B, versus expectation of USD -91.8B.

Initial jobless claims dropped slightly to 221k in the week ending July 21, below expectation of 233k.

US ISM Services PMI dropped -3.4 pts to 55.3 in February, well below expectation of 58.7. Business activity/production dropped -4.4 to 55.5. New orders dropped -9.9 to 41.9. Employment also dropped -2.5 to 52.7. But prices jumped 7.6 to 71.8.

ISM said, “the past relationship between the Services PMI and the overall economy indicates that the Services PMI for February (55.3 percent) corresponds to a 2.2 -percent increase in real gross domestic product (GDP) on an annualized basis.”

Full release here.

US ISM manufacturing rose to 56.6 in January, up from 54.1 and beat expectation of 54.3. Price paid index dropped to 49.6, below expectation of 58.0. Employment component dropped slightly to 55.5. Of the 18 manufacturing industries, 14 reported growth.

ISM noted that “Comments from the panel reflect continued expanding business strength, supported by strong demand and output. Demand expansion improved with the New Orders Index reading returning to the high 50s, the Customers’ Inventories Index remaining too low, and the Backlog of Orders remaining at a near-zero-expansion level. Consumption continued to strengthen, with production expanding strongly and employment continuing to expand at previous-month levels. Inputs — expressed as supplier deliveries, inventories and imports — continued to improve, but are negative to PMI® expansion. Inputs reflect an easing business environment, confirmed by Prices Index contraction.

“Exports continue to expand, but at the lowest level since the fourth quarter of 2016. Prices contracted for the first time since the first quarter of 2016. The manufacturing sector continues to expand, reversing December’s weak expansion, but inputs and prices indicate fundamental changes in supply chain constraints.”

Full release here.

US Empire State Manufacturing index rose to 17.2 in July, up from -0.2, above expectation of 7.85. It’s also the first positive reading since February. However, six-months ahead business conditions dropped -18.1 pts to 38.4, down from 56.5.

The indexes for future new orders and future shipments fell somewhat, but remained near 40. The index for future employment rose to 21.1, suggesting firms expect to increase employment in the months ahead. The capital expenditures index rose to 9.1, a sign that firms, on net, planned to increase capital spending.

Full release here.

US ADP report showed 291k growth in private sector jobs in January, well above expectation of 155k. By company size, small businesses added 94k jobs, medium businesses added 128k, large businesses added 69k. By sector, goods-producing companies added 54k while service-providing companies added 237k.

“The labor market experienced expanded payrolls in January,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Goods producers added jobs, particularly in construction and manufacturing, while service providers experienced a large gain, led by leisure and hospitality. Job creation was strong among midsized companies, though small companies enjoyed the strongest performance in the last 18 months.”

Full release here.

US initial jobless claims dropped -9k to 840k in the week ending October 3, above expectation of 820k. Four-week moving average of initial claims dropped -13.2k to 857k. Continuing claims dropped -1003k to 10976k in the week ending September 26. Four-week moving average of continuing claims dropped -642k to 12112k.

Full release here.