Friday, July 26, 2019

BEA: Real GDP increased at 2.1% Annualized Rate in Q2

by Calculated Risk on 7/26/2019 08:35:00 AM

From the BEA: Gross Domestic Product, Second Quarter 2019 (Advance Estimate) and Annual Update

Real gross domestic product (GDP) increased at an annual rate of 2.1 percent in the second quarter of 2019, according to the "advance" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 3.1 percent. ...

The increase in real GDP in the second quarter reflected positive contributions from personal consumption expenditures (PCE), federal government spending, and state and local government spending that were partly offset by negative contributions from private inventory investment, exports, nonresidential fixed investment and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.

The deceleration in real GDP in the second quarter reflected downturns in inventory investment, exports, and nonresidential fixed investment. These downturns were partly offset by accelerations in PCE and federal government spending.
emphasis added
The advance Q2 GDP report, with 2.1% annualized growth, was slightly above expectations.

Personal consumption expenditures (PCE) increased at 4.3% annualized rate in Q2, up from 1.1% in Q1.  Residential investment (RI) decreased 1.5% in Q2. Equipment investment increased at a 0.7% annualized rate, and investment in non-residential structures decreased at a 10.6% pace.

I'll have more later ...