Recent Updates

  • Finland: Wholesale Prices, Import/Export Price Index (Aug)
  • Hong Kong: Gross National Saving (Q2), Retained Mortgage Portfolio (Jul); Singapore: CPI (Aug); Pakistan: Trade by Commodity (Aug)
  • Japan: Domestic Shipments of Electronic Equipment (Aug)
  • France: **France Wages and Earnings Rebased to Q2-2017=100**
  • Flash PMIs: Japan, France, Germany, Euro Area, US (Sep)
  • Canada: CPI (Aug), Retail Trade (Jul)
  • more updates...

Economy in Brief

US GDP Growth Slowed
by Tom Moeller July 28, 2006

U.S. real GDP growth last quarter slowed to 2.5% (AR) from 3.7% during the prior four quarters and the figure fell short of Consensus expectations for a 3.0% advance.

Much of the disappointment stemmed from a meager 2.7% advance in business investment. It reflected a 1.0% (+6.9% y/y) decline in spending on equipment & software as well as a 21.6% (-1.0% y/y) drop in spending on transportation equipment.

Growth in real personal consumption expenditures also slowed to 2.5% from 3.4% during the prior four quarters. Durables spending growth fell 0.5% (3.3% y/y) due to a 3.1% (-4.6% y/y) drop in motor vehicles & parts.

Residential investment fell for the third straight quarter. The 6.3% decline (-0.2% y/y) knocked 0.4 percentage points out of 2Q growth in real GDP.

Final sales to domestic purchasers overall grew just 1.6% (3.0% y/y) following four quarters of 3.7% growth. Earlier growth rates were revised down but the effect on GDP was limited by upward revisions to inventories.

Last quarter, inventories added 0.4 percentage points to GDP growth.In addition, improvement in net exports added 0.3 percentage points to growth as exports grew 3.3% (7.4% y/y) and imports inched up 0.2% (6.1% y/y).

The GDP chain price index grew 3.3%, the same as during 1Q. Less final sales of computers, the chain price index grew 3.5% (3.5% y/y).

Chained 2000$, % AR 2Q '06 1Q '06 Y/Y 2005 2004 2003
GDP 2.5% 5.6% 3.5% 3.2% 3.9% 2.5%
  Inventory Effect 0.4% -0.0% 0.6% -0.3% 0.4% 0.0%
Final Sales 2.1% 5.6% 2.9% 3.5% 3.5% 2.5%
  Foreign Trade Effect  0.3% -0.0% -0.1% -0.1% -0.5% -0.3%
Domestic Final Demand 1.6% 5.4% 3.0% 3.6% 4.0% 2.8%
Chained GDP Price Index 3.3% 3.3% 3.3% 3.0% 2.8% 2.1%
close
large image