US GDP Growth Revised Up to 2.5% in Q2



In Q2 of 2013, United States' real gross domestic product increased at an annual rate of 2.5 percent, up from a preliminary estimate of 1.7 percent, according to the second estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 1.1 percent.

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

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 6.1 percent, compared with an increase of 5.8 percent. Nondurable goods increased 1.8 percent, compared with an increase of 2.7 percent.  Services increased 1.1 percent, compared with an increase of 1.5 percent.

Nonresidential fixed investment increased 4.4 percent in the second quarter, in contrast to a decrease of 4.6 percent in the first. Nonresidential structures increased 16.1 percent, in contrast to a decrease of 25.7 percent. Equipment increased 2.9 percent, compared with an increase of 1.6 percent. Intellectual property products decreased 0.9 percent, in contrast to an increase of 3.7 percent.  Real residential fixed investment increased 12.9 percent, compared with an increase of 12.5 percent.

Exports of goods and services increased 8.6 percent in the second quarter, in contrast to a decrease of 1.3 percent in the first. Real imports of goods and services increased 7.0 percent, compared with an increase of 0.6 percent.

Federal government consumption expenditures and gross investment decreased 1.6 percent in the second quarter, compared with a decrease of 8.4 percent in the first.  National defense decreased 0.6 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 decreased 0.5 percent, compared with a decrease of 1.3 percent.

The change in real private inventories added 0.59 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 $62.6 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 1.9 percent in the second quarter, compared with an increase of 0.2 percent in the first.

US GDP Growth Revised Up to 2.5% in Q2


BEA | Nuno Fontes | nuno@tradingeconomics.com
8/29/2013 1:43:11 PM