US 2016 Q2 GDP growth soft again but underlying trend better – NAB

Antony Kelly, Senior Economist at NAB, suggests that the US GDP growth remained soft in the June quarter as the GDP grew by an annualised 1.2% qoq.

Key Quotes

“This was a little stronger than the 0.8% qoq growth recorded in the March quarter, but still a relatively soft rate of growth and below expectations.

Consumption grew strongly, but business and residential investment, as well as government demand, all detracted from growth. In particular, business cut back on inventories, continuing the recent inventory correction. However, domestic demand continues to grow at around the average pace seen since the last recession, suggesting a stronger underlying economy than the headline GDP number indicates, although weak productivity growth remains a concern.”