US GDP: IT WAS ALL WORSE

The WSJ with the basic stuff:

The Commerce Department Friday said gross domestic product rose at an annualized seasonally adjusted rate of 1.3% in April through June, while first-quarter growth was revised down sharply to a 0.4% rate from the earlier estimate of a 1.9% gain. A big reason behind the downward revision in first-quarter growth was that the inventory buildup by companies was less than initially estimated, while outlays by the federal government and consumers were also revised down.(…)

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The first estimate of the economy’s benchmark indicator for the second quarter showed growth was supported largely by business investment and exports.

But consumer spending, a big engine for the U.S. economy, made a much smaller contribution to growth. Spending edged up by an annualized rate of 0.1% in April through June, the weakest it has been in two years, after a 2.1% gain in the first quarter. (…)

The core inflation rate — which excludes volatile moves in food and energy prices and is closely watched by the Fed — increased 2.1% from the previous quarter. That rise, the biggest since the last quarter of 2009, followed a 1.6% gain in the first quarter.

The overall price index for personal consumption expenditures increased by 3.1% in the second quarter, down from the 3.9% rise over the previous three months.

From the FT:

And in case that wasn’t bad enough, the great recession was even greater than first thought: data suggests that output contracted by a cumulative 5.1 per cent from 2007 and 2009, rather than the 4.1 per cent previously assumed.

Bespoke has the revisions charted:

CalculatedRisk charts the $billions before and after, showing that the US economy is still not back to its previous peak:

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