GDP tracking: US data not positive for Q2 - Nomura
|Analysts at Nomura offered their GDP tracking update after today's US data.
Key Quotes:
"In terms of GDP accounting, the relevant components of the durable goods report were negative for Q2 GDP tracking. Core capital goods shipments, which are a proxy for business equipment investment, rose moderately by 0.3%, but the March reading was revised lower to -0.3% from +0.5%, lowering the jumping-off point for business investment for Q2."
"Elsewhere, durable goods inventories—an input for inventory investment of GDP—continued to decline, whereas we had expected a slight increase. Pending home sales, on the other hand, jumped strongly in April, suggesting better existing home sales in the coming months. This should boost real estate broker commissions, a component of residential investment. All things considered, our Q2 GDP tracking estimate was revised down by 0.1pp to 2.4%, from 2.5% previously.
On our Q1 GDP tracking estimate, the downward revision to core capital goods shipments for March was slightly negative. As a result, we also revised down our Q1 GDP tracking estimate by 0.1pp, to 0.8% from 0.9% previously."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.