US GDP Growth Revised Higher to 3.1% in Q2


The US economy expanded an annualized 3.1 percent on quarter in the second quarter of 2017, above a second estimate of 3 percent and beating market expectations of 3 percent. It is the strongest growth rate since the first three months of 2015, the final estimate from the BEA showed. Private inventory investment increased more than previously estimated, but the general picture of economic growth remains the same.

Personal consumption expenditure (PCE) contributed 2.24 percentage points to growth (2.28 percent in the second estimate) and rose 3.3 percent (the same as in the second estimate). Spending went up more than anticipated for services (2.3 percent from 2.1 percent in the second estimate) but rose less for durable goods (7.6 percent from 8.9 percent) and nondurable goods (4.2 percent from 4.3 percent). 

Fixed investment added 0.53 percentage points to growth (0.58 percentage points in the second estimate) and increased 3.2 percent, compared to a 3.6 percent expansion in the second estimate. Investment rose less than initially estimated for intellectual property products (3.7 percent compared to 4.9 percent) and fell more for residential (-7.3 percent compared to -6.5 percent). In contrast, it rose faster for structures (7 percent compared to 6.2 percent in the second estimate) and growth was steady for equipment (8.8 percent). 

Private inventories added 0.12 percentage points to growth, compared to 0.02 percent in the second estimate. 

Meanwhile, exports went up at a slower 3.5 percent (3.7 percent in the second estimate) and imports rose 1.5 percent, below 1.6 percent in the second estimate. The impact from trade was 0.21 percent, unchanged from the second estimate. 

Government spending and investment subtracted 0.03 percentage points from growth, compared to a 0.05 percentage point drag in the previous estimate. It fell 0.2 percent compared to a second estimate of a 0.3 percent drop. 

BEA | Joana Taborda | joana.taborda@tradingeconomics.com
9/28/2017 12:58:08 PM