U.S. GDP second estimate to increase? - Nomura

Analysts at Nomura offered a preview of U.S. Q2 GDP, second estimate (Thursday).

Key Quotes:

"We think that the BEA is likely to revise up modestly its estimate of Q2 GDP. Incoming data since the last estimate have been generally more favorable for growth. The quarterly service survey for Q2 suggests that personal services spending was likely stronger than what the BEA had assumed previously. 

On the flip side, the survey results suggest that software investment likely was weaker than previously expected. Construction spending appears to be more favorable for nonresidential investment but implies more drag on growth from residential investment in Q2. Last, revisions to inventory and trade data for June were less favorable for growth. On balance, we expect BEA to revise up Q2 GDP to 1.2% from 1.1%, previously."