US: Real GDP contracts by 31.7% in Q2 vs. 32.5% expected

• US real GDP in second quarter contracted at a slightly softer pace than expected.
• US Dollar Index stays above 93.00 ahead of FOMC Chairman Powell's speech.

The United States' Real Gross Domestic Product (GDP) contracted at an annual rate of 31.7% in the second quarter, the US Bureau of Economic Analysis' second estimate showed on Thursday. This reading came in better than the advance estimate of 32.9% and the market expectation of 32.5%.

Market reaction

The US Dollar Index showed no reaction to this data and was last seen gaining 0.18% on the day at 93.05. Investors are focused on FOMC Chairman Jerome Powell's speech at the Jackson Hole Symposium at 1310 GMT.

Key takeaways from the press release

"With the second estimate, private inventory investment and personal consumption expenditures (PCE) decreased less than previously estimated."

"Real gross domestic income (GDI) decreased 33.1% in the second quarter, compared with a decrease of 2.5% in the first quarter."

 "The price index for gross domestic purchases decreased 1.5% in the second quarter, in contrast to an increase of 1.4% in the first quarter."