Real gross domestic product (GDP) increased at an annual rate of 2% in the second quarter of 2019 (table 1), according to the "second" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 3.1%.
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 2.1%. The revision primarily reflected downward revisions to state and local government spending, exports, private inventory investment, and residential investment that were partly offset by an upward revision to personal consumption expenditures (PCE). Imports which are a subtraction in the calculation of GDP, were unrevised (see "Updates to GDP" on page 2).
The increase in real GDP in the second quarter reflected positive contributions from PCE, federal government spending, and state and local government spending that were partly offset by negative contributions from private inventory investment, exports, residential fixed investment, and nonresidential fixed investment. Imports increased (table 2).
The deceleration in real GDP in the second quarter primarily reflected downturns in inventory investment, exports, and nonresidential fixed investment. These downturns were partly offset by accelerations in PCE and federal government spending.
Current dollar GDP increased 4.6%, or $240.3 billion, in the second quarter to a level of $21.34 trillion. In the first quarter, current-dollar GDP increased 3.9%, or $201.0 billion (tables 1 & 3).
The price index for gross domestic purchases increased 2.2% in the second quarter, compared with an increase of 0.8% in the first quarter (table 4). The PCE price index increased 2.3%, compared with an increase of 0.4%. Excluding food and energy prices, the PCE price index increased 1.7%, compared with an increase of 1.1%.
Updates to GDP
The percent change in real GDP in the second quarter was revised down 0.1 percentage point from the advance estimate, primarily reflecting downward revisions to state and local government spending, exports, private inventory investment, and residential investment that were partly offset by an upward revision to PCE. For more information, see the Technical Note. A detailed "Key Source Data and Assumptions" file is also posted for each release. For information on updates to GDP, see the "Additional Information" section that follows.
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