US GDP Beats Expectations in Q2


Real gross domestic product in the United States increased at an annual rate of 1.7 percent in the second quarter of 2013 (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 1.1 percent (revised).


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 investment that were partly offset by a negative contribution from federal government spending. Imports, which are a subtraction in the calculation of GDP, increased.

The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 0.3 percent in the second quarter, compared with an increase of 1.2 percent in the first.Excluding food and energy prices, the price index for gross domestic purchases increased 0.8 percent in the second quarter compared with 1.4 percent in the first.

Real personal consumption expenditures increased 1.8 percent in the second quarter, compared with an increase of 2.3 percent in the first.  Durable goods increased 6.5 percent, compared with an increase of 5.8 percent.  Nondurable goods increased 2.0 percent, compared with an increase of 2.7 percent.  Services increased 0.9 percent, compared with an increase of 1.5 percent.

Real nonresidential fixed investment increased 4.6 percent in the second quarter, in contrast to a decrease of 4.6 percent in the first.  Nonresidential structures increased 6.8 percent, in contrast to a decrease of 25.7 percent.  Equipment increased 4.1 percent, compared with an increase of 1.6 percent. Intellectual property products increased 3.8 percent, compared with an increase of 3.7 percent. Real residential fixed investment increased 13.4 percent, compared with an increase of 12.5 percent.

Real exports of goods and services increased 5.4 percent in the second quarter, in contrast to a decrease of 1.3 percent in the first.  Real imports of goods and services increased 9.5 percent, compared with an increase of 0.6 percent.

Real federal government consumption expenditures and gross investment decreased 1.5 percent in the second quarter, compared with a decrease of 8.4 percent in the first. National defense decreased 0.5 percent, compared with a decrease of 11.2 percent. Nondefense decreased 3.2 percent, compared with a decrease of 3.6 percent.  Real state and local government consumption expenditures and gross investment increased 0.3 percent, in contrast to a decrease of 1.3 percent.

The change in real private inventories added 0.41 percentage point to the second-quarter change in real GDP after adding 0.93 percentage point to the first-quarter change.  Private businesses increased inventories $56.7 billion in the second quarter, following increases of $42.2 billion in the first quarter and $7.3 billion in the fourth.

Real final sales of domestic product -- GDP less change in private inventories -- increased 1.3 percent in the second quarter, compared with an increase of 0.2 percent in the first.

US GDP Beats Expectations in Q2


Bureau of Economic Analysis | anna@tradingeconomics.com
7/31/2013 2:08:08 PM