Details:
- Consumer spending +0.8% vs +1.7% prelim
- Consumer spending on durables % vs -0.3% prelim
- GDP final sales +2.1% vs +2.2% prelim
- GDP deflator +1.7% vs +2.0% prelim
- Core PCE +3.7% vs +3.7% prelim
- Exports -9.3% vs -10.6% prelim
- Imports -7.6% vs -7.0% prelim
- Business investment +5.2% vs +3.9% prelim
- Corporate profits +6.9% vs -10.6% prelim
Percentage point changes:
- Net trade pp +0.04 vs -0.12 pp prelim
- Inventories 0.0 pp vs -0.09 pp prelim
- Govt pp +0.57 vs +0.58 pp prelim
The headline might lull you into thinking there's nothing notable here but the consumer was quite a bit weaker in the quarter while inflation was lower. Both of those things are notable for monetary policy going forward. Corporate profits were also much stronger.
The market is focused on the softer consumer data following the release with the US dollar and Treasury yields lower.
