US Q-2 GDP Figure Will Be ‘Big’
- June Advance International Trade in Goods (actual -$68.30-B, consensus -$66.70-B)
- Advance Wholesale Inventories (actual 0.0%; prior 0.4%)
- June Durable Orders (actual 1.0% consensus 3.2%; prior -0.3%)
- June Durable Goods -ex trans (actual 0.4% consensus 0.4%; prior 0.3%
White House economic adviser Larry Kudlow said Friday’s GDP release will reflect “big” growth for the US economy.
“You’re going to get a very good economic growth number tomorrow, big.
The GDP report is due Friday from the US Commerce Department.
When asked if he was allowed to speculate on the report, Mr. Kudlow said he “would never do such a thing. I just wanted to bring it up, again to help you in this interview.”
Economists surveyed by Reuters expect the gain to be 4.2%, a range the veteran financial guru and former Ronald Reagan adviser says sounds about right, although he said he didn’t have any official information about the report before the cable news interview Thursday.
“I have no reason to disagree with that, but I have no knowledge, no information,” said Mr. Kudlow, the head of the National Economic Council that advises President Donald Trump,
“We will not hear about that until way later today,” said Kudlow.
Meanwhile, orders placed with US factories for business equipment increased in June for a third straight month, a sign of investment momentum heading into the second half despite corporate concerns over tariffs, Commerce Department figures showed Thursday.
The latest economic data signal business investment remains firm even as President Trump widens a global trade tariffs beyond steel and aluminum and into a growing range of products from China.
Business spending, which is getting a boost from lower corporate taxes, is one of the factors supporting a projected pickup in second-quarter economic growth.
At the same time, the uncertainty over trade policy may spur some companies to slow investment, resulting in a hit to economic growth in the second half or later. Companies including General Motors (NYSE:GM) are citing higher prices for steel and aluminum, as impacting their business.
After a report on durable-goods orders, along with data showing a wider merchandise-trade deficit in June and weaker-than-expected inventories, several estimates of Q-2 GDP growth declined.
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