US: Gain in real GDP in Q2 is likely to have been revised down to 1.0% annualized - RBS

Research Team at RBS, suggests that the gain in real GDP in Q2 is likely to have been revised down to 1.0% annualized from the BEA’s advanced estimate of 1.2%.

Key Quotes

“Economic indicators released since the initial GDP report, such as factory orders and construction spending for June, have suggested a greater drag from inventories and non-residential investment than was initially reported. Going forward, we expect overall real GDP to rise at a 3.5% pace in Q3, as inventories swing from an outright drawdown in Q2 to a build-up in Q3.”