US GDP rose 3.7% in Second Quarter

US GDP rose 3.7% in Q2 (annualised) according to the latest estimate, a very healthy upward revision to the previous estimate of 2.3%, and easily beating the 3.2% consensus. All components were revised up, PCE now seen to have contributed 2.1ppts to growth (a +0.1ppt upward revision), housing adding 0.3ppts (vs an initial estimate of 0.2ppts), inventories adding 0.2ppts (vs an initial est of -0.1ppts).

But the big story in the data is business investment which now looks a lot healthier, adding 0.4ppts to growth vs an advance est of -0.1ppt. Business investment alone accounts for about 1/3 of the total upward revision to Q2 growth.