MA’s Monthly GDP Measure Rose 0.3% in July

Monthly GDP rose 0.3% in July, continuing a five-month run of solid increases following weak readings during the winter.  About two-thirds of the increase in July was accounted for by a jump in the pace of nonfarm inventory investment, with the balance accounted for by a sharp increase in construction spending.  There were offsetting movements elsewhere in the details of monthly GDP.  The level of monthly GDP in July was 2.9% above the second-quarter average at an annual rate.  Our latest tracking forecast of 3.5% GDP growth in the third quarter assumes increases in August and September that average 0.1% per month (not annualized).   Click here for more information on MA’s Monthly GDP measure.

MA’s Monthly GDP Measure Rose 0.3% in June

Monthly GDP rose 0.3% in June, continuing a four-month run of solid increases following weak readings during the winter.  The increase in June was mostly accounted for by a sharp increase in net exports.  Elsewhere, an increase in domestic final sales (mainly in PCE) was offset by a decline in nonfarm inventory investment.  The level of monthly GDP in June was 1.2% above the second-quarter average at an annual rate.  Our latest forecast of 3.2% GDP growth in the third quarter includes increases in monthly GDP during the third quarter that average about 0.2% (not annualized) per month.   Click here for more information on MA’s Monthly GDP measure.