The Bureau of Economic Analysis (BEA) released today (7-28-22) its “advance” estimate for real gross domestic product (GDP) in Q2 of 2022. According to the report, GDP decreased at an annual rate of 0.9% in Q2. This follows a GDP decline of 1.6% in Q1.
The “advance” GDP estimate released today is based on source data that are incomplete and subject to further revision by the source agency. The “second” estimate for Q2, based on more complete data, is scheduled to be released on August 25, 2022.
The decrease in real GDP in Q2 reflects decreases in private inventory investment, residential fixed investment, federal government spending, state and local government spending, and nonresidential fixed investment. These were partly offset by increases in exports and personal consumption expenditures (PCE). Imports, which are a subtraction in the calculation of GDP, increased.
The BEA notes that the smaller decrease in Q2 (versus Q1) reflected an upturn in exports and a smaller decrease in federal government spending that were partly offset by larger declines in private inventory investment and state and local government spending, a slowdown in PCE, and downturns in nonresidential fixed investment and residential fixed investment. Imports decelerated.
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