Gross Domestic Product jumps in Q2
August 30, 2017
• Increases to a 3 percent annual increase
• Up from 1.2 percent in First Quarter
The nation’s real gross domestic product (GDP) increased at an annual rate of 3.0 percent in the second quarter, according to the "second" estimate released by the Bureau of Economic Analysis on Wednesday.
In the first quarter, real GDP increased 1.2 percent.
The newest GDP estimate is based on more complete source data than were available for the "advance" estimate issued last month. In the advance estimate, the increase in real GDP was 2.6 percent.
With this second estimate for the second quarter, the general picture of economic growth remains the same, the BEA says. Increases in personal consumption expenditures (PCE) and in nonresidential fixed investment were larger than previously estimated.
These increases were partly offset by a larger decrease in state and local government spending.
Real gross domestic income (GDI) increased 2.9 percent in the second quarter, compared with an increase of 2.7 percent (revised) in the first. The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 3.0 percent in the second quarter, compared with an increase of 2.0 percent in the first quarter.
The increase in real GDP in the second quarter reflected positive contributions from PCE, nonresidential fixed investment, exports, federal government spending, and private inventory investment that were partly offset by negative contributions from residential fixed investment and state and local government spending.
Imports, which are a subtraction in the calculation of GDP, increased.
The acceleration in real GDP in the second quarter primarily reflected upturns in private inventory investment and federal government spending and an acceleration in PCE that were partly offset by downturns in residential fixed investment and state and local government spending and a deceleration in exports.
Current-dollar GDP increased 4.0 percent, or $189.0 billion, in the second quarter to a level of $19,246.7 billion. In the first quarter, current-dollar GDP increased 3.3 percent, or $152.2 billion.
The price index for gross domestic purchases increased 0.8 percent in the second quarter, compared with an increase of 2.6 percent in the first quarter. The PCE price index increased 0.3 percent, compared with an increase of 2.2 percent. Excluding food and energy prices, the PCE price index increased 0.9 percent, compared with an increase of 1.8 percent.