US GDP tracking update following US CPI – Nomura

Analysts at Nomura offered their US GDP tracking update after today’s US CPI disappointment.

Key Quotes:

“Some components that are relevant to PCE deflators from the April CPI report were slightly weaker than we expected. This implies more real personal consumption in Q2.  

However, net defense outlays increased slightly less than expected in April, indicating less government expenditures in Q2. Altogether, our Q2 real GDP tracking estimate is unchanged at 3.2% q-o-q saar.”