ECON: Final Q2 GDP Remains at 2.5 Percent
- GDP +2.5 vs +2.6 Forecast, +2.5 Previously
- Few internal components were meaningfully changed
- Core PCE +0.6 vs +0.8 Forecast, smallest gain since Q209
- Market Reaction: Reacting more to Jobless Claims.
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 2.5 percent in the second quarter of 2013
(that is, from the first quarter to the second quarter), according to the "third" estimate released by the
Bureau of Economic Analysis. In the first quarter, real GDP increased 1.1 percent.
The GDP estimate released today 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 (PCE), 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.