US 2Q GDP preview: Stronger than Q1 - Wells Fargo

Analysts from Wells Fargo, expect a 2.2% Q2 GDP growth. The report will be released next Friday. It will be the first reading. 

Key Quotes: 

“Our call for Q2 GDP growth is 2.2 percent, as our expectations remain more muted than the consensus forecast. We continue to expect a stronger print than the first quarter, particularly for the personal consumption component, which we expect will increase 3.3 percent in Q2 after a paltry 1.1 percent in Q1. Our call has a lift from both residential and business fixed investment in Q2, albeit smaller than that of Q1. We also expect the change in inventory investment to add to growth in Q2 after a large contraction in Q1, while net exports also reverses direction, cutting into Q2 growth.”

“We see little reason to expect economic growth to ramp up significantly through the end of the year, and remain confident real GDP will grow between 2.0-2.5 percent in 2017. Without a major ramp up in productivity growth, the U.S. economy is unlikely to stray from its current course.”