Apr-Jun 2016 2nd Preliminary GDP Estimate
GDP revised upwards to +0.7% q/q annualized, with major demand components following suit
September 08, 2016
Summary
◆The real GDP growth rate for Apr-Jun 2016 (2nd preliminary est) was revised upwards to +0.7% q/q annualized (+0.2% q/q) in comparison to the 1st preliminary report (+0.2% q/q annualized and +0.0% q/q), while at the same time exceeding market consensus (+0.2% q/q annualized and +0.0% q/q). Considering the fact that some growth during the Jan-Mar period was due to extra business days gained in the leap year, we would have to conclude that current results are maintaining a firm undertone since by now the positive effects of the leap year have worn off.
◆Performance by demand component in comparison to the 1st preliminary results shows upward revisions for all major components, including personal consumption, capex, inventory investment, and public investment helping to push up overall results. Personal consumption was revised upwards a small amount, reflecting fundamental statistics for the month of June. As for capex, results of corporate statistics brought an upward revision of this area as well, at -0.1% q/q (-0.4% on the 1st preliminary). Inventory investment was also revised upwards to +0.1%pt q/q in comparison to the 1st preliminary report (-0.0%pt).
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