US GDP Growth Confirmed at 2.5% in Q2


US GDP expanded at an annual rate of 2.5 percent in the second quarter of 2013, according to BEA's third estimate and unchanged from second estimate released later August. The acceleration in GDP primarily reflected upturns in exports and in nonresidential fixed investment, a smaller decrease in federal government spending, and an upturn in state and local government spending that were partly offset by an acceleration in imports and deceleration in private inventory investment and in personal consumption expenditure.

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 6.2 percent, compared with an increase of 5.8 percent. Nondurable goods increased 1.6 percent, compared with an increase of 2.7 percent. Services increased 1.2 percent, compared with an increase of 1.5 percent.

Real nonresidential fixed investment increased 4.7 percent in the second quarter, in contrast to a decrease of 4.6 percent in the first. Nonresidential structures increased 17.6 percent, in contrast to a decrease of 25.7 percent. Equipment increased 3.3 percent, compared with an increase of 1.6 percent. Intellectual property products decreased 1.5 percent, in contrast to an increase of 3.7 percent. Real residential fixed investment increased 14.2 percent, compared with an increase of 12.5 percent.

Real exports of goods and services increased 8.0 percent in the second quarter, in contrast to a decrease of 1.3 percent in the first. Real imports of goods and services increased 6.9 percent, compared with an increase of 0.6 percent.

Real 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 3.1 percent, compared with a decrease of 3.6 percent. Real state and local government consumption expenditures and gross investment increased 0.4 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 $56.6 billion in the second quarter, following increases of $42.2 billion in the first quarter and $7.3 billion in the fourth.

Bureau Economics Analysis | Joana Taborda | joana.taborda@tradingeconomics.com
9/26/2013 1:45:43 PM