Wednesday, August 30, 2017

Q2 GDP Revised up to 3.0% Annual Rate

by Bill McBride on 8/30/2017 08:33:00 AM

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

Real gross domestic product (GDP) increased at an annual rate of 3.0 percent in the second quarter of 2017, according to the "second" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 1.2 percent.

The GDP estimate released today 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; 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 ...
emphasis added
Here is a Comparison of Second and Advance Estimates. PCE growth was revised up from 2.8% to 3.3%. (solid PCE). Residential investment was revised up slightly from -6.8% to -6.5%. This was above the consensus forecast.