September 26, 2019
Real gross domestic product (GDP) grew for the second quarter of 2019 at an annual rate of 2.0%, based on the “third” estimate released by the Bureau of Economic Analysis (BEA). The first quarter of 2019 real GDP yielded an increase of 3.1%.
According to BEA, the third estimate, released today, is based on more complete source data than were available for the “second” estimate. In the “second” estimate, the increase in real GDP was also 2.0%. BEA noted, “downward revisions to personal consumption expenditures (PCE) and nonresidential fixed investment were primarily offset by upward revisions to state and local government spending and exports. Imports, which are a subtraction in the calculation of GDP, were revised down”.
For the second quarter, the increase in real GDP showcased positive contributions from personal consumption expenditures (PCE), federal government spending, and state and local government spending that were partly offset by negative contributions from private inventory investment, exports, non-residential fixed investment and residential fixed investment.
The Bureau of Economic Analysis noted, “the deceleration in real GDP growth in the second quarter primarily reflected downturns in inventory investment, exports, and nonresidential fixed investment. These downturns were partly offset by accelerations in PCE and federal government spending.”
In the second quarter, a 2.2% increase was observed for the price index for gross domestic purchases, compared with an increase of 0.8% in the first quarter. The PCE price index climbed 2.4%, relative to an increase of 0.4%. Excluding food and energy prices, the PCE price index rose 1.9%, compared with an increase of 1.1%.
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