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First Cut: Third estimate of 2Q GDP unchanged at 2.0%

The third estimate of second quarter GDP was unchanged at 2.0% from the second estimate. It was on market forecasts and will cause no ripples as the composition was in line with expectations.

There were minor revisions with personal consumption expenditures now up 4.6% (previously up 4.7%) due to a downward revision for nondurables spending (up 6.5% after up 6.8%) that was probably related to falling gasoline prices. Spending on durables (up 13.0%) and services (up 2.8%) were the same as in the second estimate. Gross fixed investment was revised lower (down 6.3% after down 6.1%). Government consumption was revised higher (up 4.8% after up 4.5%).

Net exports were revised down a bit, but not significantly (-$662.7 billion from -$663.9 billion), and the change in private inventories was essentially unrevised ($74.8 billion from $74.6 billion).

The end of the third quarter is only a few days away, rendering this report largely moot. Consumer spending is expected to be a mainstay of growth again in the advance estimate for third quarter GDP when it is released at 8:30 ET on Wednesday, October 30.

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