US GDP tracking update – Nomura

Analysts at Nomura offered their GDP tracking update.

Key Quotes:

“The April trade report, which included annual revisions to previous data, implied less drag from net exports in Q1 and Q2, relative to BEA assumptions and our previous forecast, respectively. However, for Q2, net exports of capital goods in April were stronger than we expected, suggesting less growth in equipment investment than we expected. On net, after rounding, our Q2 real GDP tracking estimate was unchanged at 4.1% q-o-q  saar. Our Q1 tracking estimate was revised up 0.4pp to 2.5% q-o-q  saar.”