US Real GDP Increases at an Annual Rate of 1.5% in Q2, BEA Reports in Its “Second” Estimate

On Wednesday, the Bureau of Economic Analysis (BEA) released its “second” estimate for Q2 real gross domestic product (GDP), reporting that GDP increased at an annual rate of 1.5%. In Q1, real GDP increased 2.1%.

The change in Q2 GDP primarily reflected increases in consumer spending, investment, and exports, partly offset by a decrease in government spending. Imports, which are a subtraction in the calculation of GDP, increased.

The latest estimate left GDP unchanged from the “advance” estimate, reflecting an upward revision to consumer spending that was partly offset by an upward revision to imports.

Compared with Q1, the deceleration in real GDP reflected a downturn in government spending and decelerations in investment and exports that were partly offset by an acceleration in consumer spending. Imports increased more in Q2 than in Q1.

Real final sales to private domestic purchasers—the sum of consumer spending and gross private fixed investment—rose 4.2% in Q2, a 0.3 percentage point upward revision from the previous estimate.

The price index for gross domestic purchases increased 5.8%, revised up 0.1 percentage point. The personal consumption expenditures (PCE) price index rose 5.3%, revised up 0.2 percentage point. Excluding food and energy, the PCE price index increased 3.6%, revised up 0.2 percentage point.

The “third” estimate for Q2 will be released on September 30.