US: Real GDP contracts by 0.6% in Q2 vs -0.8% expected

• US Q2 GDP growth got revised higher to -0.6% in the second estimate.
• US Dollar Index trades modestly lower on the day near 108.50.

The US economy contracted at an annualized rate of 0.6% in the second quarter, the US Bureau of Economic Analysis' (BEA) second estimate showed on Thursday. This reading came in higher than the flash estimate of -0.9% and surpassed the market expectation of -0.8%.

"In the advance estimate, the decrease in real GDP was 0.9%," the BEA explained in its publication. "The update primarily reflects upward revisions to consumer spending and private inventory investment that were partly offset by a downward revision to residential fixed investment."

Market reaction

The US Dollar Index edged slightly higher after this data and was last seen losing 0.1% on the day at 108.50.