US Real GDP Increases at an Annual Rate of 3.0% in Q2, BEA Reports in Its “Second” Estimate

On Thursday, the Bureau of Economic Analysis (BEA) released its “second” estimate for Q2 real gross domestic product (GDP). BEA now estimates real GDP increased at an annual rate of 3.0% in Q2. This follows a reported real GDP increase of 1.4% in Q1.

The “second” estimate is based on more complete source data than were available for the “advance” estimate issued last month. In the “advance” estimate, the increase in real GDP was 2.8%. The update primarily reflected an upward revision to consumer spending.

The increase in real GDP primarily reflected increases in consumer spending, private inventory investment, and nonresidential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.

Compared to Q1, the acceleration in real GDP in Q2 primarily reflected an upturn in private inventory investment and an acceleration in consumer spending. These movements were partly offset by a downturn in residential fixed investment.