2nd quarter GDP growth revised slightly upwards to 1.7%
According to the third* estimate, annualized GDP growth in the 2nd quarter was 1.7%. This marks a slight upward revision from the previously reported second estimate of 1.6% growth. Growth in the first quarter of 2010 was 3.7%, and in the 4th quarter of 2009 was 5.0%. The BEA will release its advance estimate for 3rd quarter GDP growth on October 29th.
Highlights:
- The slight upward revision to 2nd quarter growth (0.1 percentage point, or $3.4 billion) was due primarily to upward revisions to private inventory investment and personal consumption expenditures, most of which were offset by an upward revision to imports (a subtraction from GDP).
- The 1.7% rate of growth primarily reflected positive contributions from personal consumptions expenditures, nonresidential and residential fixed investment, exports, private inventory investment, and federal government spending. An increase in imports contributed negatively to GDP growth.
- The deceleration in GDP growth, from a rate of 3.7% in the 1st quarter, was primarily due to a steep acceleration in imports and a steep deceleration in private inventory investment. These were partly offset by an upturn in residential fixed investment and in state and local government spending, as well as acceleration in nonresidential fixed investment and in federal government spending.
- The change in real private inventories added 0.82 percentage point to the change in 2nd quarter GDP (revised upwards from 0.63 percentage point in the second estimate), compared to a contribution of 2.64 percentage points in the 1st quarter of 2010.
*Technical Note: the BEA changed its designations for GDP estimates from “advance,” “preliminary,” and “final” to “advance,” “second,” and “third.” It was felt that the “preliminary” designation was not clear, and the “final” estimate was not really final as it remains subject to annual and comprehensive revisions.
