The Bureau of Economic Analysis (BEA) has released their adjustment to the Q2 GDP report of 4.0%. It has been revised upward to 4.2%! Just in the nick of time too since the midyear elections are just around the corner!
Here is an interesting piece of information. Personal Consumption Expenditures (typically about 70% of GDP) rose by only 2.5%. But Durable Goods Expenditures rose by 14.3%, the largest increase since 2009. Lots of aircraft orders for Boeing!
Fixed investment rose 17.5% in Q2, the largest increase since Q4 2011.
Although not in the GDP report, real wage growth is 0%. That is correct. NO WAGE GROWTH!
So, Personal Consumption Growth rose only 2.5%, but Durable Good Expenditures rose by 14.3% and fixed investment rose by 17.5% with NO REAL WAGE GROWTH.
The reaction in the bond markets? US Treasury 10 year yield dropped to 2.330%.
The BEA spokesman announcing the Q2 GDP revision and sees nothing but untapped economic potential.