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Prelim GDP q/q

This article includes an interpretation and reading of the gross domestic product of the United States, a look at previous evidence, what are the expectations for today's data, and its impact on the economy

Gross domestic product is the broadest measure of economic activity and a key indicator of an economy's health

Annual percentage change (4X quarterly change) in GDP shows and indicates economic growth as a whole

The advance estimate showed that the US economy expanded at an annual rate of 2.4% on a quarterly basis in the second quarter of 2023, which is higher than the 2% in the previous period and much higher than the market expectation of 1.8%. Non-residential fixed investment accelerated sharply (7.7% vs. 0.6%), led by a rebound in equipment (10.8% vs -8.9%) and intellectual property products (3.9% vs. 3.1%). Private inventories also added 0.14 percentage points to growth (compared to -2.14 in the first quarter). On the other hand, consumer spending slowed sharply (1.6% vs. 4.2%), but beat market estimates as inflation eased but the labor market remained tight. While consumption of goods slowed sharply (0.7% vs. 6%), spending on services remained strong (2.1% vs. 3.2%). Public spending increased at a much weaker pace (2.6% vs. 5%), and net trade weighed on growth by subtracting 0.12 percentage points, as exports fell by 10.8% and imports fell by a smaller 7.8%. Residential investment continued to decline (-4.2% vs. -4%)

Expectations for today's statement and how it will affect the currency

Expectations for today's reading are 2.4%

A higher-than-expected reading indicates growth in the economy and was positively affected by the US dollar, while a lower-than-expected reading indicates a decline in economic growth and was negatively affected by the US dollar. The news will be issued at 12:30 (GMT+00:00) UTC

Prelim GDP q/q



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