Real gross domestic product – the output of goods and services produced by labor and property located in the U.S. – increased at an annual rate of 2.5 percent in the second quarter compared to the first quarter, according to the third estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 1.1 percent.
The third GDP estimate released 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 2.5 percent. With the third estimate for the second quarter, the general picture of economic growth remains largely the same.
The increase in real GDP in the second quarter primarily reflected positive contributions from personal consumption expenditures, exports, nonresidential fixed investment, private inventory investment and residential fixed investment that were partly offset by a negative contribution from federal government spending. Imports, which are a subtraction in the calculation of GDP, increased.
The acceleration in real GDP in the second quarter primarily reflected upturns in exports and in nonresidential fixed investment, a smaller decrease in federal government spending and an upturn in state and local government spending that were partly offset by an acceleration in imports and decelerations in private inventory investment and in PCE.
The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 0.2 percent in the second quarter, 0.1 percentage point less than the second estimate; this index increased 1.2 percent in the first quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 0.8 percent in the second quarter, compared with an increase of 1.4 percent in the first.