The GDP print shaped up better than expected, gaining 0.2% M/M versus estimates of 0.1%…

… led by goods-producing industries, which added 0.6% and carried more muted 0.1% growth in services.

At the industry level, gains were broad-based with the exception of retail trade - which we saw evidence of with the weak retail sales print last week.

Of particular note is the continued recovery in real estate, with home resale activity driving the fourth straight sequential gain after a tough start to the year…

… and in manufacturing, which rebounded in July but remains volatile…

… with preliminary estimates for August pointing to a down month in the category, which should offset gains in wholesale and retail trade to drive flat GDP.

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