Date: July 26, 2019
Real gross domestic product (GDP) grew for the second quarter of 2019 at an annual rate of 2.1%, based on the “advance” 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 first estimate, released today, is based on incomplete source data that is subject to further revision by the source agency. The “second” estimate for the second quarter, based on more complete data, will be released on August 29, 2019.
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. Imports, which are a subtraction in the calculation of GDP, increased.
The Bureau of Economic Analysis noted, “the deceleration in real GDP growth in the second quarter reflected downturns in inventory investment, exports, and nonresidential fixed investment. These downturns were partly offset by accelerations in PCE and federal government spending.”
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 2.3%, relative to an increase of 0.4%. Excluding food and energy prices, the PCE price index rose 1.8%, compared with an increase of 1.1%.
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