US Prelim Q2 GDP to be revised higher - Barclays

In the view of Barclay’s Research Team, the second readout of Q2 US GDP data is expected to show a slight acceleration in the GDP growth rate.

Key Quotes:

“We look for real GDP growth to be unchanged at 2.6% q/q saar in the second estimate of Q2 17 GDP.

Incoming data point to a one-tenth upward revision to consumption (to 2.9% from 2.8%) as well as relatively minor upward revisions to structures investment, inventory accumulation, and government spending. Offsetting these improvements are residential investment and equipment spending, each of which should receive modest downgrades relative to what was assumed by the BEA in the advance estimate.

We look for the contribution of net trade to growth to be unchanged (at 0.2pp).”