U.S. GDP Revised Down to 1.3 Percent in Q2


U.S. Real gross domestic product increased at an annual rate of 1.3 percent in the second quarter of 2012 (that is, from the first quarter to the second quarter), according to the "third" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 2.0 percent.

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

The deceleration in real GDP in the second quarter primarily reflected decelerations in PCE, in nonresidential fixed investment, and in residential fixed investment that were partly offset by smaller decreases in federal government spending and in state and local government spending and an acceleration in exports.

Motor vehicle output added 0.20 percentage point to the second-quarter change in real GDP after adding 0.72 percentage point to the first-quarter change.  Final sales of computers subtracted 0.10 percentage point from the second-quarter change in real GDP after adding 0.02 percentage point to the first-quarter change.

Real personal consumption expenditures increased 1.5 percent in the second quarter, compared with an increase of 2.4 percent in the first.  Durable goods decreased 0.2 percent, in contrast to an increase of 11.5 percent.  Nondurable goods increased 0.6 percent, compared with an increase of 1.6 percent.  Services increased 2.1 percent, compared with an increase of 1.3 percent.

Real nonresidential fixed investment increased 3.6 percent in the second quarter, compared with an increase of 7.5 percent in the first.  Nonresidential structures increased 0.6 percent, compared with an increase of 12.9 percent.  Equipment and software increased 4.8 percent, compared with an increase of 5.4 percent. Real residential fixed investment increased 8.5 percent, compared with an increase of 20.5
percent.

Real exports of goods and services  increased 5.3 percent in the second quarter, compared with an increase of 4.4 percent in the first.  Real imports of goods and services increased 2.8 percent, compared with an increase of 3.1 percent.

Real federal government consumption expenditures and gross investment decreased 0.2 percent in the second quarter, compared with a decrease of 4.2 percent in the first.  National defense decreased 0.2 percent, compared with a decrease of 7.1 percent.  Nondefense decreased 0.4 percent, in contrast to an increase of 1.8 percent.  Real state and local government consumption expenditures and gross
investment decreased 1.0 percent, compared with a decrease of 2.2 percent.

The change in real private inventories subtracted 0.46 percentage point from the second-quarter change in real GDP, after subtracting 0.39 percentage point from the first-quarter change.  Private businesses increased inventories $41.4 billion in the second quarter, following increases of $56.9 billion in the first quarter and $70.5 billion in the fourth.


TradingEconomics.com, the Bureau of Economic Analysis
9/27/2012 1:39:09 PM