Here is a breakdown of where the GDP growth came from.
This is how Bloomberg presented the data.
- 2Q personal consumption up 2.5% vs est. up 1.9% (range 1.5%-2.9%); prior revised to 1.2% from 1%
- Core PCE q/q 2% vs est. 1.9% (range 1.4%-2.3%)
- Gross private investment up 17% in 2Q after falling 6.9% in 1Q
- Residential up 7.5% after falling 5.3%
- Purchases of durable goods jumped 14%, most since 3Q 2009
- Corporate spending up 5.9% vs little changed q/q
- Inventory accumulation added 1.7ppts to GDP
Interesting that the markets have pulled back since the news. Now I guess we wait for the FOMC minutes.