Gross Domestic Product: Second Quarter 2018

August 08, 2018

The U.S. Bureau of Economic Analysis indicated that, “Real Gross Domestic Product (GDP) increased at an annual rate of 4.1 percent in the second quarter of 2018 relative to a 2.2 percent increase in real GDP for the first quarter.”

The report mentioned that due to positive contributions from personal consumption expenditures (PCE), exports, non-residential fixed investment, federal government spending and state and local government, real GDP climbed in the second quarter.

Thus, offsetting the negative contributions from private inventory investment and residential fixed investment. It was noted that there was an increase in imports.

 

 

In the second quarter, the growth in real GDP reflected an increase in personal consumption expenditures (PCE) along with exports, a smaller decrease in residential fixed investment, an increase in federal government spending and in state and local spending. As a result, there was a downturn in private inventory investment and a decline in non-residential fixed investment. Whereas, imports had also decreased.

 

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2018-08-08T19:47:53-05:00