BEA Reports Real GDP in Q2 2022 Decreased at an Annual Rate of 0.6% In Its “Second Estimate”

The Bureau of Economic Analysis (BEA) released today (8-25-22) its “second estimate” for Q2 2022 real gross domestic product (GDP). According to the report, GDP decreased at an annual rate of 0.6% in Q2 2022. The decline follows -1.6% in Q1 2022.

The “second” GDP estimate released today is based on more complete source data than were available for the “advance” estimate issued last month. In the “advance” estimate, the decrease in real GDP was 0.9%. The update primarily reflects upward revisions to consumer spending and private inventory investment, which were partly offset by a downward revision to residential fixed investment.

The decline in real GDP in Q2 reflected decreases in private inventory investment, residential fixed investment, federal government spending, and state and local government spending, which were partly offset by increases in exports and consumer spending. Imports, which are a subtraction in the calculation of GDP, increased.

The BEA notes that the real GDP smaller decrease reflected an upturn in exports and a smaller decrease in federal government spending that were partly offset by a larger decline in private inventory investment, a slowdown in consumer spending, and downturns in nonresidential fixed investment and residential fixed investment. Imports decelerated.