by Bill McBride on 7/30/2015 08:33:00 AM
Thursday, July 30, 2015
Real gross domestic product -- the value of the production of goods and services in the United States, adjusted for price changes -- increased at an annual rate of 2.3 percent in the second quarter of 2015, according to the "advance" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.6 percent (revised).The advance Q2 GDP report, with 2.3% annualized growth, was below expectations of a 2.9% increase, however Q1 was revised up to 0.6% annualized growth (from a 0.2% decline).
The increase in real GDP in the second quarter reflected positive contributions from personal consumption expenditures (PCE), exports, state and local government spending, and residential fixed investment that were partly offset by negative contributions from federal government spending, private inventory investment, and nonresidential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 1.4 percent in the second quarter, in contrast to a decrease of 1.6 percent in the first. Excluding food and energy prices, the price index for gross domestic purchases increased 1.1 percent, compared with an increase of 0.2 percent.
Real personal consumption expenditures increased 2.9 percent in the second quarter, compared with an increase of 1.8 percent in the first.
Personal consumption expenditures (PCE) increased at a 2.9% annualized rate in Q2.
I'll have more on the annual revision later ...
Posted by Bill McBride on 7/30/2015 08:33:00 AM