US: Real GDP expanded (second estimate) 2% in Q2 as expected

BEA's second estimate of Q2 GDP growth ticks down to 2%.
US Dollar Index clings to daily gains near 98.30.
Core PCE ticks down to 1.7% on a quarterly basis in Q2.

Eren Sengezer FXStreet

According to the US Bureau of Economic Analysis' (BEA) second estimate, the real gross domestic product (GDP) increased at an annual rate of 2% in the second quarter of 2019 slightly lower than the previous estimate of 2.1%.

The US Dollar Index, which tracks the dollar's value against a basket of six major currencies, ignored the data and is now up 0.1% on the day at 98.30.

"The revision primarily reflected downward revisions to state and local government spending, exports, private inventory investment, and residential investment that were partly offset by an upward revision to personal consumption expenditures (PCE)," the publication read. "Imports which are a subtraction in the calculation of GDP, were unrevised."

The underlying details of the report further revealed that the Personal Consumption Expenditures in the second quarter stayed unchanged at 2.3% but the core version ticked down to 1.7% from 1.8%.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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