US: Real GDP grows at an annual rate of 2.1% in Q2, revised from 2.4%

• US Q2 GDP revised from 2.4% to 2.1%. 
• US Dollar Index extends slide after GDP data. 

The US economy expanded at an annual rate of 2.1% during the second quarter, a reading that came in below the previous estimate of 2.4%. “The updated estimates primarily reflected downward revisions to private inventory investment and nonresidential fixed investment that were partly offset by an upward revision to state and local government spending”, said the Bureau of Economic Analysis. In the first quarter, real GDP increased 2.0%.

The Personal Consumption Expenditure (PCE) Price Index increased 2.5%, a downward revision of 0.1 percentage point from the previous estimate. Excluding food and energy prices, the PCE price index increased 3.7 percent, a downward revision of 0.1 percentage point.

Market reaction

The US Dollar experienced fresh daily losses across the board following the release of the GDP report. It was already weak due to the ADP Employment figures. As of writing, the DXY trades at 103.20, down 0.25% for the day, at its lowest intraday level in a week.