Wednesday, August 29, 2018

Q2 GDP Revised up to 4.2% Annual Rate

by Bill McBride on 8/29/2018 08:36:00 AM

From the BEA: National Income and Product Accounts Gross Domestic Product: Second Quarter 2018 (Second Estimate)

Real gross domestic product (GDP) increased 4.2 percent in the second quarter of 2018, according to the “second” estimate released by the Bureau of Economic Analysis. The growth rate was 0.1 percentage point more than the “advance” estimate released in July. In the first quarter, real GDP increased 2.2 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 4.1 percent. With this second estimate for the second quarter, the general picture of economic growth remains the same; the revision primarily reflected upward revisions to nonresidential fixed investment and private inventory investment that were partly offset by a downward revision to personal consumption expenditures (PCE). Imports which are a subtraction in the calculation of GDP, were revised down.
emphasis added
PCE growth was revised down from 4.0% to 3.8%. Residential investment was revised down from -1.1% to -1.6%. This was above the consensus forecast.

Here is a Comparison of Second and Advance Estimates.