Friday, July 28, 2017

BEA: Real GDP increased at 2.6% Annualized Rate in Q2

by Bill McBride on 7/28/2017 08:35:00 AM

From the BEA: Gross Domestic Product: Second Quarter 2017 (Advance Estimate)

Real gross domestic product increased at an annual rate of 2.6 percent in the second quarter of 2017, according to the "advance" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 1.2 percent (revised).
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The increase in real GDP in the second quarter reflected positive contributions from personal consumption expenditures (PCE), nonresidential fixed investment, exports, and federal government spending that were partly offset by negative contributions from private residential fixed investment, private inventory investment, and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased.

The acceleration in real GDP growth in the second quarter reflected a smaller decrease in private inventory investment, an acceleration in PCE, and an upturn in federal government spending. These movements were partly offset by a downturn in residential fixed investment and decelerations in exports and in nonresidential fixed investment.
emphasis added
The advance Q2 GDP report, with 2.6% annualized growth, was at expectations.

Personal consumption expenditures (PCE) increased at 2.8% annualized rate in Q2, up from 1.9% in Q1.   Residential investment (RI) decreased at a 6.8% pace. Equipment investment increased at a 8.2% annualized rate, and investment in non-residential structures increased at a 5.2% pace.

I'll have more later ...