TD Securities economists Eli Nir and Oscar Munoz highlight that Q2 United States (US) Gross Domestic Product (GDP) growth slowed to 1.5% q/q AR, but underlying private domestic final purchases accelerated to 3.9%. They stress that AI (Artificial intelligence)-related activity remains a large share of the economy, yet growth outside AI sectors was strong. They argue this broader momentum suggests policy may not be highly restrictive.
Underlying momentum extends beyond AI
“Headline Q2 GDP growth moderated to 1.5% q/q AR, but underlying activity (private domestic final purchases) accelerated to a strong 3.9%.”
“The percent of GDP that comes from…
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