The US economy is still growing at an above average rate quarter-over-quarter, but Q2’s GDP print was lower than expected (6.5% versus the expected 8.4%).
US GDP growth slowed as M2 Money growth slowed. Although M2 Money growth us almost 2x real GDP growth.
M2 Money velocity fell … again … to its second lowest print in history at 1.1197.
And then we have GDP price growth (inflation) at 6% QoQ.
The good news is that personal consumption expenditures rose 11.8% QoQ almost matching M2 Money growth of 12.2% YoY.
The S&P 500 rose to an all-time high on the GDP news!!