It’s finally out! The “advance” report on Q2 GDP has been one of the most highly anticipated economic data releases in a few years. In addition to the U.S. economy growing at an annual rate of 4.1% in the Q2, the Bureau of Economic Analysis (BEA) said Q1 GDP has been revised upward to +2.2%.
“I’m calling this a near ‘Goldilocks’ report because it’s not so HOT that the yield on the 10-year U.S. Treasury is spiking through 3.00%,” Tim Anderson, Managing Director of TJM Investments, LLC said. “Three hours after the report the 10-year yield has actually declined slightly to 2.96%, from 2.97% yesterday.”
Mr. Anderson said there are clearly internal details within the report that will be dissected and micro-analyzed by investors throughout the morning. But the bottom line is the economy grew at 4%-plus in the Q2, the first time since 2014 that we’ve had a quarterly GDP report with a 4 handle.
Take a look at the GDP stats for the last 5 quarters:
We now have an annualized GDP of +3.1% from the trailing 4 quarters, reinforced by growth consistently above +2% in every quarter for the first time in more than 10 years.