Greg had the US growth data for Q2 here:
US GDP Advanced for Q2 2.8% vs 2.0% estimate
2.8% vs. 2% expected is a huge beat.
Bank of America says the economy “remains on robust footing”. Got that right.
In brief from their note:
2Q US GDP growth … even stronger than our above-consensus forecast of 2.3%, and our final tracking estimate of 2.4%upside surprise on growth was supported by strong consumption growth of 2.3%Overall, the economy continues to disprove skeptics. Growth has certainly cooled relative to last year, but it has done so at a gradual pace. The risk of a sharp slowdown is low, in our view. the headline print is a clean signal of where underlying momentum is in the economy. Again, we are cooling but gradually. The Fed can afford to wait We continue to expect the Fed to start cutting in DecemberSeptember has moved closer to the baseline given recent incoming data that point to cooling in labor markets and a return to disinflation
This article was written by Eamonn Sheridan at www.forexlive.com.
