Group 1 - The core viewpoint of the article highlights the upward revision of the U.S. second-quarter GDP growth, primarily driven by improved business investment and significant trade contributions [1][4] - Business investment growth was revised from an initial 1.9% to 5.7%, reflecting enhanced investments in software and transportation equipment [4] - Net exports contributed nearly 5 percentage points to GDP growth, marking the highest level on record, contrasting with the previous quarter where net exports had a negative impact [4][9] Group 2 - Consumer spending showed resilience with a second-quarter annualized growth rate of 1.6%, up from the initial estimate of 1.4%, contributing 1.07 percentage points to GDP growth [5][6] - The real final sales to private domestic purchasers, a key indicator of consumer demand, grew at a steady rate of 1.9% for two consecutive quarters, indicating stable underlying demand [5][6] - Retailers, including Walmart and Home Depot, expressed optimism about consumer resilience despite rising prices due to tariffs [5] Group 3 - The revised second-quarter actual GDP annualized quarter-on-quarter growth rate was 3.3%, exceeding expectations of 3.1% and the previous value of 3% [7] - The core Personal Consumption Expenditures (PCE) price index for the second quarter remained steady at 2.5%, aligning with initial estimates [7][12] Group 4 - Domestic Gross Income (GDI) surged by 4.8% in the second quarter, contrasting sharply with a mere 0.2% increase in the first quarter, indicating a rebound in economic activity [11] - Corporate profits increased by 1.7% in the second quarter, reversing the largest decline since 2020 recorded in the first quarter [11] - The share of after-tax profits of non-financial corporations remained stable at 15.7%, significantly higher than pre-pandemic levels, suggesting robust profitability [11]

Investment Rating - The report indicates a revised Q1 GDP growth of -0.2% (quarter-over-quarter annualized), which is an upward revision of 0.1 percentage points from previous estimates [1][6] Core Insights - The revision details show softer underlying growth, particularly in real domestic final sales, which were revised down by 0.3 percentage points, primarily due to a 0.6 percentage point downward revision in consumer spending growth [1][6] - The contribution of inventory accumulation to GDP growth was revised up by 0.3 percentage points to 2.6 percentage points, while net exports' contribution was revised down by 0.1 percentage points to -4.9 percentage points [6][7] - Real gross domestic income (GDI) fell by 0.2% in Q1, influenced by a significant drag from net dividends, which saw a $125 billion increase from the rest of the world, the largest since 2018 [7][8] - Core PCE inflation for April is forecasted at 0.10%, leading to a year-over-year rate of 2.49%, while headline PCE inflation is expected at 0.09%, corresponding to a year-over-year rate of 2.12% [8][9] - Initial jobless claims rose to 240,000 for the week ending May 24, exceeding expectations, with continuing claims also showing an increase [9][10] Summary by Sections GDP and Economic Activity - Q1 GDP growth was revised to -0.2%, with consumer spending growth revised down to +1.2% [2][6] - Equipment investment growth saw a significant upward revision to +24.8% [6][7] Inflation Metrics - Core PCE inflation was revised down to +3.41% annualized, with the year-on-year rate at +2.76% [8] - The GDP deflator was also revised down to +3.70% annualized [8] Employment Data - Initial jobless claims increased by 14,000 to 240,000, with a four-week moving average remaining at 231,000 [9][10]