ECON: GDP Rised 1.7 Percent, As Expected.
Real gross domestic product -- the output of goods and services produced by labor and property
located in the United States -- increased at an annual rate of 1.7 percent in the second quarter of 2012
(that is, from the first quarter to the second quarter), according to the "second" estimate released by the
Bureau of Economic Analysis. In the first quarter, real GDP increased 2.0 percent.
The GDP estimate released today is based on more complete source data than were available for
the "advance" estimate issued last month. In the advance estimate, the increase in real GDP was 1.5
percent (see "Revisions" on page 3).
The increase in real GDP in the second quarter primarily reflected positive contributions from
personal consumption expenditures (PCE), exports, nonresidential fixed investment, and residential
fixed investment that were partly offset by negative contributions from private inventory investment and
from state and local government spending. Imports, which are a subtraction in the calculation of GDP,
The deceleration in real GDP in the second quarter primarily reflected decelerations in PCE, in
nonresidential fixed investment, and in residential fixed investment that were partly offset by a smaller
decrease in federal government spending, an acceleration in exports, and a smaller decrease in private