US GDP Grows 2.6% in Q2, Matches Forecasts


The US economy advanced an annualized 2.6 percent on quarter in the second quarter of 2017, following a downwardly revised 1.2 percent expansion in the previous period, matching market expectations, an advance estimate showed. The improvement was boosted by strong consumer spending and a rebound in government consumption while exports slowed and housing investment shrank.

Personal consumption expenditure (PCE) contributed 1.93 percentage points to growth (1.32 percent in the previous quarter) and rose 2.8 percent (1.9 percent in the previous quarter). Spending rebounded for durable goods (6.3 percent from -0.1 percent) and increased more for nondurable goods (3.8 percent from 1.1 percent). In contrast, services rose less (1.9 percent from 2.5 percent). 

Fixed investment added 0.36 percentage points to growth (1.27 percentage points in the previous quarter) and increased 2.2 percent, compared to an 8.1 percent expansion in the previous period. Residential investment shrank 6.8 percent (+11.1 percent in the previous quarter) and investment rose less for structures (4.9 percent from 14.8 percent) and intellectual property products (1.4 percent from 5.7 percent). On the other hand, investment in equipment went up at a faster 8.2 percent (from 4.4 percent). 

Private inventories subtracted 0.02 percentage points from growth, much less than 1.46 percent points in the first quarter.

Meanwhile, exports went up 4.1 percent, lower than 7.3 percent in the first quarter and imports rose 2.1 percent, below 4.3 percent in the previous quarter. The impact from trade was 0.18 percent, slightly below 0.22 percent in the previous period. 

Government spending and investment added 0.12 percentage points to growth (-0.11 percent in the previous period) and increased 0.7 percent (-0.6 percent in the previous quarter).

BEA | Joana Taborda | joana.taborda@tradingeconomics.com
7/28/2017 12:57:56 PM