Real GDP for the second quarter of 2016 grew at an annual rate of 1.1%, according to the Bureau of Economic Analysis’s revised estimate, down slightly from the advance estimate of 1.2%. The general picture of economic growth remained the same, as revisions to GDP components were small.
The change in GDP reflected downward revisions for government spending, private inventories and net exports, partially offset by upward revisions for nonresidential fixed investment and PCE.
The revision to government spending was due to lower state and local government investment in structures, while the revision to inventory investment reflected downward revisions to construction, mining and utilities, which were partially offset by an upward revision to wholesale trade.
Net exports were revised based on an upward revision in goods imports. In contrast, stronger than expected consumer spending on motor vehicles and parts increased PCE’s contribution to GDP.
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