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

The Bureau of Economic Analysis (BEA) released on Thursday (9-28-23) its “third” 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 2.2% in 2023Q1.

The “third” GDP estimate released today is based on more complete source data than was available for the “second” estimate issued last month. In the “second” estimate, the increase in real GDP was also 2.1%. The updated estimate primarily reflected downward revisions to consumer spending that was partly offset by upward revisions to nonresidential fixed investment, exports, and inventory investment. Imports, which are a subtraction in the calculation of GDP, were revised lower.

The increase in real GDP reflected increases in nonresidential fixed investment, consumer spending, and state and local government spending. Those gains were partially offset by a decrease in exports. Imports also decreased.

Compared to Q1, the deceleration in real GDP in Q2 primarily reflected a declaration in consumer spending, a downturn in exports, and a deceleration in federal government spending that were partially offset by an upturn in private investment, an acceleration in nonresidential fixed investment, and a smaller decrease in residential investment. Imports were down.

The “advance” Q3 estimate is scheduled to be released on Thursday, October 26th.