Thursday, August 29, 2019

Q2 GDP Revised Down to 2.0% Annual Rate

by Calculated Risk on 8/29/2019 08:52:00 AM

From the BEA: Gross Domestic Product, Second Quarter 2019 (Second Estimate); Corporate Profits, Second Quarter 2019 (Preliminary Estimate)

Real gross domestic product (GDP) increased at an annual rate of 2.0 percent in the second quarter of 2019, according to the "second" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 3.1 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 2.1 percent. The revision primarily reflected downward revisions to state and local government spending, exports, private inventory investment, and residential investment that were partly offset by an upward revision to personal consumption expenditures (PCE). Imports which are a subtraction in the calculation of GDP, were unrevised.
emphasis added
PCE growth was revised up from 4.3% to 4.7%. Residential investment was revised down from -1.5% to -2.9%. This was at the consensus forecast.

Here is a Comparison of Second and Advance Estimates.