Friday, August 26, 2011

Real GDP Increased by 1% in Second Quarter

The Bureau of Economic Analysis reported that real gross domestic product (GDP) grew at an annual rate of 1.0% in the second quarter of 2011, which was revised downward from an initial estimate of 1.3%. In the first quarter, real GDP increased 0.4%.

The acceleration in real GDP in the second quarter compared to the first quarter primarily reflected a deceleration in imports (which are a drag on GDP), an upturn in federal government spending, and an acceleration in nonresidential fixed investment. This was partly offset by decelerations in personal consumption expenditures and in exports and a downturn in private inventory investment.

Consumer spending, which accounts for almost 70 percent of GDP, softened in the second quarter increasing by 0.4% compared with an increase of 2.1% in the first quarter.

Real final sales of domestic product -- GDP less change in private inventories -- increased 1.2% in the second quarter, after increasing less than 0.1% in the first quarter.

Read the press release.

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