The second edition of the US GDP reading has been upgraded to show: Faster expansion of 3.0% in Q2 2024 This is up from the initial figure of 2.8%. This also reflects a significant acceleration in economic growth compared to the first quarter of 2024 GDP of 1.4%.
The positive revision to the preliminary GDP reading came mostly from Increased consumer spending on services and goodsespecially gasoline and other energy-related commodities.
However, some components of the report revealed a reduction in non-residential fixed investment, exports, and private inventory investment.
Link to preliminary US GDP data for Q2 2024
Meanwhile, Initial price index The consumer price index (CPI) rose from 2.3% to 2.5% during the same period, instead of remaining unchanged as expected. Excluding volatile food and energy prices, the CPI rose 2.8% during the period, which is 0.1% lower than the initial estimate.
US Dollar vs Major Currencies: 5 minutes
US Dollar Overlay Against Major Currencies Chart by TradingView
The US dollar, which was mostly moving sideways with a slight upward bias ahead of the preliminary GDP release, turned sharply higher upon seeing upgrades in growth and inflation readings.
The weekly initial jobless claims report released at the same time also came in slightly better than expected at 231K versus the consensus of 232K and the previous increase of 233K.
The US dollar posted its biggest gains against the Japanese yen, followed by the Swiss franc and the New Zealand dollar, although gains were quickly erased about two hours after the GDP figures were released. Weaker-than-expected pending home sales released later reflected a sharper-than-expected 5.5% monthly drop in July, sending contracts to their lowest level since 2001.