The monthly summary continues to improve, although PPI numbers continue to be a concern... going forward.
The 2nd quarter GDP came in above expectations at 2.8% annualized. I was puzzled by the slower growth in Services at 2.2% annualized, which helps explain the 2.3% annualized for personal consumption. Durable goods up 4.6% and nondurables at 1.4%, both annualized.
Overall a good report, but I would be a bit concerned if fixed investment can continue its expansion, which is equipment driven, while inventories keep building.
As for the PCE excluding food and energy... not much movement. Granted the market is anticipating a rate cut in September... and it might be warranted. A string of rate cuts might not be so warranted, imho.
We can start the cycle again for next month, with the likelihood of CPI being at or slightly above this past month's reading.
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