The Conundrum, will Buildout be followed by Consumption

Todays 2nd Quarter GDP update continues to show the same story we have seen since the US Tax Changes went into effect, money going into Tech and Equipment buildout with stagnant consumption and exports.  That buildout will be good if it is followed by increased consumption.  Consequently the story of final demand has not played out yet.  (My focus on the July peak in economic activity seems to have pushed my anticipation of more clarity in the Third Quarter GDP forecasts, when in fact todays GDP number was just a Second Quarter Update)

 

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