Real GDP Increases at an Annual Rate of 2.1% in Q2, BEA Reports in Its “Second” Estimate

The Bureau of Economic Analysis (BEA) released Wednesday (8-30-23) its “second” estimate for 2023Q2 real gross domestic product (GDP). According to the report, GDP increased at an annual rate of 2.1%. This follows a reported real GDP increase of 2.0% in Q1.

The “second” GDP estimate is based on more complete source data than was available for the “advance” estimated issued last month. In the “advance” estimate, the increase in real GDP was 2.4%. The updated estimates primarily reflected downward revisions to private inventory investment and nonresidential fixed investment that were partly offset by an upward revision to state and local government spending.

The increase in real GDP reflected increases in consumer spending, nonresidential fixed investment, state and local government spending, and federal government spending that were partially offset by decreases in exports, residential fixed investment, and private inventory investment. Imports, which are a subtraction in the calculation of GDP, decreased.

Compared to Q1, the acceleration in real GDP in Q2 primarily reflected a smaller decrease in private inventory investment and an acceleration in nonresidential fixed investment. These movements were partly offset by a downturn in exports and deceleration in consumer spending and federal government spending. Imports also turned lower.

The “third” and final estimate for Q2 GDP is due to be released on Thursday, September 28th.