U.S. Economy Grows 1.5% in Q2


U.S. real gross domestic product increased at an annual rate of 1.5 percent in the second quarter of 2012, (that is, from the first quarter to the second quarter), according to the "advance" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 2.0 percent.

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

The deceleration in real GDP in the second quarter primarily reflected a deceleration in PCE, an acceleration in imports, and decelerations in residential fixed investment and in nonresidential fixed investment that were partly offset by an upturn in private inventory investment, a smaller decrease in federal government spending, and an acceleration in exports.

Real personal consumption expenditures increased 1.5 percent in the second quarter, compared with an increase of 2.4 percent in the first.  Durable goods decreased 1.0 percent, in contrast to an increase of 11.5 percent.  Nondurable goods increased 1.5 percent, compared with an increase of 1.6 percent.  Services increased 1.9 percent, compared with an increase of 1.3.

Real nonresidential fixed investment increased 5.3 percent in the second quarter, compared with an increase of 7.5 percent in the first. 

Real exports of goods and services increased 5.3 percent in the second quarter, compared with an increase of 4.4 percent in the first.  Real imports of goods and services increased 6.0 percent, compared with an increase of 3.1 percent.

Real federal government consumption expenditures and gross investment decreased 0.4 percent in the second quarter, compared with a decrease of 4.2 percent in the first.  National defense decreased  0.4 percent, compared with a decrease of 7.1 percent. 

The change in real private inventories added 0.32 percentage point to the second-quarter change in real GDP after subtracting 0.39 percentage point from the first-quarter change. 


TradingEconomics.com, U.S. Bureau of Economic Analysis
7/27/2012 1:54:30 PM