Recent Updates
- US: GDP by Industry (Q1)
- Canada: Retail Trade (May), CPI (Jun)
- Thailand: Trade (Jun); China: Loans from Financial Institutions (Jun); Korea: Trade in Goods (Jun); Taiwan: Export Orders (Jun)
- Turkey: NCI Index (Jul)
- Turkey: Established & Liquidated (Jun-Press); Morocco: CPI, Public Finance (Jun)
- Spain: Workers Affected by Layoffs (Apr); Foreign Trade (May)
- more updates...
Economy in Brief
German PPI Rises at Nine-Month High Pace
The German PPI gained 0.2% in June on the heels of a 0.6% rise in May...
U.S. Leading Economic Indicators Improve
The Conference Board's Composite Index of Leading Economic Indicators increased 0.5% (5.8% y/y) during June...
Philadelphia Fed Factory Conditions Recover; Prices Surge
The Philadelphia Fed reported that its General Factory Sector Business Conditions Index rebounded to 25.7 during July...
U.S. Initial Unemployment Insurance Claims Hit Lowest Since 1969
Initial claims for unemployment insurance dropped to 207,000 during the week ended July 14...
Japan's Trade Deficit Swings Back to Surplus (Small Surplus)
Japan's early June trade results show a goods trade position having swung back to surplus in June from deficit in May...
by Tom Moeller September 28, 2006
U.S. real GDP growth last quarter was revised back to 2.6% (AR) from the preliminary report of 2.9% and the advance report of 2.5% growth. The figure fell short of Consensus expectations for an unrevised 2.9% advance.
Growth in 2Q corporate profits was revised down to 1.4% (18.5% y/y) from the initial report of a 3.2% advance. Profits at U.S. nonfinancial corporations fell a revised 3.6% (+10.7% y/y) instead of rising 0.6%. Financial corporate profits grew a stronger 9.4% (29.6% y/y) and earnings of overseas corporations grew a stronger 6.1% (29.5% y/y).
A lessened contribution from inventories, back to 0.4% from 0.6%, was the source of most of the downward revision to 2Q GDP growth. The contribution from an improved net export deficit was unrevised at 0.4 percentage points though exports grew a somewhat stronger 6.2% (8.2% y/y) and imports rose 1.4% (6.4% y/y).
Growth in final sales to domestic purchasers was notched down slightly to 1.6% (3.0% y/y) as the decline in residential investment was deepened to 11.1% (-1.5% y/y) and that reduced 2Q GDP growth by 0.7 percentage points.
Real personal consumption expenditures was unrevised at 2.6% (3.0% y/y) while growth in business fixed investment was revised slightly lower to 4.4% (7.2% y/y).
The rise in the GDP chain price index was unrevised at 3.3%. Less final sales of computers the chain price index grew 3.5% (3.4% y/y). The chain price index for residential investment grew 2.9% (5.0% y/y), down from a peak quarterly rate of growth of 10.5% in early 2004.
Barreling Down the Road To Recession? from the Federal Reserve Bank of St. Louis can be found here.
| Chained 2000$, % AR | 2Q '06 (Final) | 2Q '06 (Prelim.) | 1Q '06 | Y/Y | 2005 | 2004 | 2003 |
|---|---|---|---|---|---|---|---|
| GDP | 2.6% | 2.9% | 5.6% | 3.5% | 3.2% | 3.9% | 2.5% |
| Inventory Effect | 0.4% | 0.6% | -0.0% | 0.6% | -0.3% | 0.4% | 0.0% |
| Final Sales | 2.1% | 2.3% | 5.6% | 2.9% | 3.5% | 3.5% | 2.5% |
| Foreign Trade Effect | 0.4% | 0.4% | -0.0% | -0.1% | -0.1% | -0.5% | -0.3% |
| Domestic Final Demand | 1.6% | 1.7% | 5.4% | 3.0% | 3.6% | 4.0% | 2.8% |
| Chained GDP Price Index | 3.3% | 3.3% | 3.3% | 3.3% | 3.0% | 2.8% | 2.1% |
