US Q2 GDP prints lower than expected, Q1 GDP revised higher

FXStreet (Mumbai) – The US government report released on Friday showed the economy expanded at an annualised rate of 2.3% , compared to the expectation of 2.5%. The previous quarter’s GDP was revised higher to 0.6% from -0.2%.

Business spending stays weak

The economy rebounded in the second quarter as the effect of transitory factors such as weather and port delays faded away, however, the strong US dollar and insufficient wage gains capped the recovery. Business spending remained weak, with investment excluding housing falling at a 0.6% rate, the worst performance since the third quarter of 2012.

Core personal consumption expenditure (pce), an inflation gauge tracked by the Fed, rose 1.8% beating the estimate of a rise to 1.6% from 1.0%.

The US government report released on Friday showed the economy expanded at an annualised rate of 2.3% , compared to the expectation of 2.5%. The previous quarter’s GDP was revised higher to 0.6% from -0.2%.

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