U.S. spring-quarter GDP growth likely to be boosted to 3%

U.S. real GDP data for Q2 is scheduled to release today. The economy is expected to perform better in compare to Q1. Data released subsequent to the U.S. Bureau of Economic Analysis' (BEA) advance report on real GDP growth universally indicated that government statisticians probably underestimated the pace of business activity during the spring quarter.

The real economy expanded by 3.0% annualized in Q2, faster than both the initial 2.3% estimate and Q1s 0.6% pace, estimates Societe Generale. While all national account segments likely will be marked higher in this week's report, the largest boosts to the headline growth rate probably will be attributable to increased consumer spending, inventory building and government outlays, adds SocGen. 

The mix between final demands and inventories is expected to be more favorable in the BEA's second pass. Real final sales of domestic product likely expanded by 2.9% during the spring - one-half percentage point more than previously thought. Flipping the signs on the international trade accounts, inflation-adjusted sales to domestic purchasers probably rose by 2.7% in Q2, up from the 2.2% advance estimate.