BMO's chief US economist Scott Anderson noted that while the second-quarter real GDP preliminary estimate rose 1.5% annualized, missing market expectations, the details were favorable and confirmed solid domestic demand. Personal consumption grew strongly at a 3.2% annual rate, with goods consumption up 5.2% and durable goods consumption up 6.8%, while services consumption posted a moderate 2.2% increase. Non-residential fixed investment and equipment investment rose at annual rates of 8.4% and 15.2%, respectively, exceeding the firm's forecasts. Anderson analyzed that robust personal consumption and business spending boosted domestic demand, and said the slowdown in the June PCE price index gave the Federal Reserve room to hold policy rates steady, but expressed the view that given the strength of demand, the disinflation is unlikely to be sustained.