Friday, July 27, 2018

BEA: Real GDP increased at 4.1% Annualized Rate in Q2

by Bill McBride on 7/27/2018 08:34:00 AM

Note: This release includes the 2018 Comprehensive Update to GDP, and includes revisions to previous GDP releases.

From the BEA: Gross Domestic Product: Second Quarter 2018 (Advance Estimate)

Real gross domestic product increased at an annual rate of 4.1 percent in the second quarter of 2018, according to the "advance" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 2.2 percent (revised).
The increase in real GDP in the second quarter reflected positive contributions from personal consumption expenditures (PCE), exports, nonresidential fixed investment, federal government spending, and state and local government spending that were partly offset by negative contributions from private inventory investment and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.

The estimates released today also reflect the results of the 15th comprehensive update of the National Income and Product Accounts (NIPAs). The updated estimates reflect previously announced improvements, and include the introduction of new not seasonally adjusted estimates for GDP, GDI, and their major components. For more information, see the Technical Note.
emphasis added
The advance Q2 GDP report, with 4.1% annualized growth, was close to expectations.

Personal consumption expenditures (PCE) increased at 4.0% annualized rate in Q2, up from 0.5% in Q1.   Residential investment (RI) decreased 1.1% in Q2. Equipment investment increased at a 3.9% annualized rate, and investment in non-residential structures increased at a 13.3% pace.

I'll have more later ...