Q2 GDP: More Weakness, Data below FOMC June Projections via Calculated Risk

Overall this was another weak GDP report although slightly above expectations.

It appears that the drag from state and local governments might be ending, although the drag from Federal government spending is ongoing.

Residential investment (RI) remains a bright spot (increasing at a 13.4% annualized rate), and RI as a percent of GDP is still very low - and I expect RI to continue to increase over the next few years.

For the FOMC meeting today, the data showed all indicators are still below the June projections (see bottom three graphs).

Read more...Calculated Risk: Q2 GDP: More Weakness, Data below FOMC June Projections