US GDP tracking up date - Nomura

Analysts at Nomura offered a GDP tracking update based on the US data overnight.

Key Quotes:

"On net, the data today raised our Q3 real GDP tracking estimate by 0.1pp to 2.9% q-o-q saar and our Q2 estimate by 0.1pp to 3.2%. 

Core capital goods orders in July were raised notably in the final estimate, while core orders in June were lowered slightly, implying greater equipment investment in Q3 than our previous estimates. 

Further, manufacturers’ inventories of nondurable goods in July were stronger than we had anticipated, with revisions to durable goods inventories in line with our expectations. 

However, June non-durable goods inventories were revised up notably, implying an upward revision in change in private inventories in Q2, which is negative to our estimate of change in private inventories in Q3. 

On balance, the unexpected strength in non-durable goods inventories and upward revisions to core shipments offset the negative impact from a higher jumping-off point from Q2."