BY: MARSHALL BARTLETT
Senior Vice President / Portfolio Manager
In this morning’s announcement, the first reading indicates GDP grew by 2.1% in the second quarter 2019, higher than expected but below the 3.1% reading in the previous quarter. The result was driven by strong consumer and government spending, while business investment was weak; which highlights the bifurcated nature of the current economy. The core PCE, a measure of inflation monitored by the Federal Reserve, increased 1.8% in the quarter, which remains below the stated target of 2%. Overall, a decent report as the economy continues to grow, albeit slower than last quarter, and the first half of 2019 averages to the mid 2% range. The Federal Reserve will have to contemplate both strong and weak economic data points at their upcoming meeting. In all, bond yields initially ticked higher following the report and equity futures are higher heading into the market open.
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