U.S. GDP Revised Down to 1% in Q2


U.S. real gross domestic product increased at an annual rate of 1.0 percent in the second quarter of 2011, (that is, from the first quarter to the second quarter), according to the "second" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.4 percent.

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

Final sales of computers added 0.11 percentage point to the second-quarter change in real GDP after adding 0.08 percentage point to the first-quarter change.  Motor vehicle output subtracted 0.15 percentage point from the second-quarter change in real GDP after adding 1.08 percentage points to the first-quarter change.

Real personal consumption expenditures increased 0.4 percent in the second quarter, compared with an increase of 2.1 percent in the first.  Real nonresidential fixed investment increased 9.9 percent, compared with an increase of 2.1 percent.  Nonresidential structures increased 15.7 percent, in contrast to a decrease of 14.3 percent. Equipment and software increased 7.9 percent, compared with an increase of 8.7 percent.  Real residential fixed investment increased 3.4 percent, in contrast to a decrease of 2.4 percent.

Real exports of goods and services increased 3.1 percent in the second quarter, compared with an increase of 7.9 percent in the first.  Real imports of goods and services increased 1.9 percent, compared with an increase of 8.3 percent.

Real federal government consumption expenditures and gross investment increased 2.0 percent in the second quarter, in contrast to a decrease of 9.4 percent in the first.  National defense increased 7.1 percent, in contrast to a decrease of 12.6 percent.  Nondefense decreased 7.5 percent, compared with a decrease of 2.7 percent.  Real state and local government consumption expenditures and gross investment decreased 2.8 percent, compared with a decrease of 3.4 percent.

The change in real private inventories subtracted 0.23 percentage point from the second-quarter change in real GDP, after adding 0.32 percentage point to the first-quarter change.  Private businesses increased inventories $40.6 billion in the second quarter, following increases of $49.1 billion in the first quarter and of $38.3 billion in the fourth.


TradingEconomics.com, US Bureau of Economic Analysis
8/26/2011 1:36:52 PM