2Q23 GDP: Slow End to 2Q But 3Q Still Looks Robust

Bottom Line:  The third reading of 2nd Quarter 2023 GDP showed growth of 2.1% annualized, unchanged from prior reports. Consumption was notably lower, though, rising 0.8% in the quarter, down from a previously reported 1.7%. This suggests the consumer ended the 2nd Quarter on a slower note. The drag from net exports, though, was revised higher. All that said, this report is old data with only two more business days left in the THIRD quarter. The Atlanta Fed's GDP model suggests 3Q started on a very strong note, with that model running at 4.86%. While we think that model will ultimately come in lower once more 3Q data is available, consensus forests of 3+% still look reasonable. Overall, the economy is still growing at a surprisingly moderate to even robust pace.