The following text of the U.S. GDP report was released by the Commerce Department.
Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 3.8 percent in the second quarter of 2007, according to final estimates released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.6 percent.
The GDP estimates released today are based on more complete source data than were available for the preliminary estimates issued last month. In the preliminary estimates, the increase in real GDP was 4.0 percent.
The increase in real GDP in the second quarter primarily reflected positive contributions from personal consumption expenditures (PCE) for services, exports, nonresidential structures, federal government spending, state and local government spending, and equipment and software that were partly offset by a negative contribution from residential fixed investment. Imports, which are a subtraction in the calculation of GDP, decreased.
The acceleration in real GDP growth in the second quarter primarily reflected a downturn in imports, upturns in federal government spending and in private inventory investment, accelerations in exports, in nonresidential structures, and in equipment and software, and a smaller decrease in residential fixed investment that were partly offset by a notable deceleration in PCE.
Final sales of computers contributed 0.21 percentage point to the second-quarter growth in real GDP after subtracting 0.01 percentage point from the first-quarter growth. Motor vehicle output contributed 0.03 percentage point to the second-quarter growth in real GDP after contributing 0.18 percentage point to the first-quarter growth.
The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 3.8 percent in the second quarter, the same as in the preliminary estimate; this index also increased 3.8 percent in the first quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 1.5 percent in the second quarter, compared with an increase of 3.1 percent in the first.
Real personal consumption expenditures increased 1.4 percent in the second quarter, compared with an increase of 3.7 percent in the first. Real nonresidential fixed investment increased 11.0 percent, compared with an increase of 2.1 percent. Nonresidential structures increased 26.2 percent, compared with an increase of 6.4 percent. Equipment and software increased 4.7 percent, compared with an increase of 0.3 percent. Real residential fixed investment decreased 11.8 percent, compared with a decrease of 16.3 percent.
Real exports of goods and services increased 7.5 percent in the second quarter, compared with an increase of 1.1 percent in the first. Real imports of goods and services decreased 2.7 percent, in contrast to an increase of 3.9 percent.
Real federal government consumption expenditures and gross investment increased 6.0 percent in the second quarter, in contrast to a decrease of 6.3 percent in the first. National defense increased 8.5 percent, in contrast to a decrease of 10.8 percent. Nondefense increased 0.9 percent, compared with an increase of 3.8 percent. Real state and local government consumption expenditures and gross investment increased 3.0 percent, the same increase as in the first.
The real change in private inventories added 0.22 percentage point to the second-quarter change in real GDP, after subtracting 0.65 percentage point from the first- quarter change. Private businesses increased inventories $5.8 billion in the second quarter, following increases of $0.1 billion in the first quarter and $17.4 billion in the fourth.
Real final sales of domestic product -- GDP less change in private inventories -- increased 3.6 percent in the second quarter, compared wi...