US: Q2 GDP growth to accelerate to an annualized 2.5% q/q - TDS

The analysis team at TD expects US Q2 GDP growth to accelerate to an annualized 2.5% q/q, slightly below the market consensus for a 2.6% print.

Key Quotes

“This reflects a strong pickup in consumer spending and broadening non-residential business investment growth, though residential investment and net exports should exert a small drag. The Q2 Employment Cost Index will be released simultaneously and both TD and the market consensus expect a 0.6% q/q gain. Wages and salaries are expected to outpace benefit payments, which is positive for markets, though wage inflation should slip to 2.2% from 2.4% on a year-ago basis due to unfavourable base effects.”