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

On Thursday, the Bureau of Economic Analysis (BEA) released its “third” estimate for Q2 real gross domestic product (GDP). Real GDP increased at an annual rate of 3.0% in Q2. This follows a reported increase of 1.6% (recently revised upward from 1.4%) in Q1.

The “third” estimate is based on more complete source data than were available for the “second” estimate issued last month. In the second estimate, the increase in real GDP was also 3.0%. The update primarily reflected upward revisions to private inventory investment and federal government spending that were offset by downward revisions to nonresidential fixed investment and exports. Imports, which are a subtraction in the calculation of GDP, were revised up.

The increase in real GDP primarily reflected increases in consumer spending, private inventory investment, and nonresidential fixed investment. Imports 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.