With just two days left until the end of the third quarter, what happened in Q2 will hardly provoke a market reaction, which is why when the BEA announced that the third and final Q2 GDP print was revised from 3.0% to 3.1%, (or specifically from 3.049% to 3.06%) it hardly inspired a move in risk assets, even though it did come in fractionally better than the 3.0% expected, and more than double the 1.2% Q1 GDP print.

The revision to the third estimate of GDP growth mainly reflected an upward revision to private inventory investment, notably farm inventories. Personal consumption rose 3.3% in 2Q after rising 1.9% prior quarter, while its contribution to the change in GDP was 2.24% in 2Q, slightly below the 2.28% in the previous revision. Nonresidential fixed investment, or spending on equipment, structures and intellectual property rose 6.7% in 2Q after rising 7.2% prior quarter.

The increase in real GDP in the second quarter primarily reflected positive contributions from PCE, nonresidential fixed investment, exports, federal government spending, and private inventory investment that were partly offset by negative contributions from residential fixed investment and state and local government spending. Imports increased.

The acceleration in real GDP in the second quarter reflected an upturn in private inventory investment, an acceleration in PCE, a deceleration in imports, and an upturn in federal government spending that were partly offset by a downturn in residential fixed investment, a deceleration in exports, and a downturn in state and local government spending.

For the inflation watchers, the GDP price index rose 1.0% in 2Q after rising 2.0% prior quarter, while Core PCE q/q rose 0.9% in 2Q after rising 1.8% prior quarter

The BEA also reported that Corporate Profits Rose 0.7% Q/Q in Q2, after falling 2.1% in prior quarter.On an annual basis , corporate profits were up 6.4% in 2Q after rising 3.3% prior quarter. Notably Financial industry profits declined 7.1% in 2Q after falling 7.9% prior quarter. 

Federal Reserve bank profits down 10.6% in 2Q after rising 2.7% prior quarter. Finally, nonfinancial sector profits rose 4.9% in 2Q after rising 0.3% prior quarter.