The Bureau of Economic Analysis (BEA) said U.S. real gross domestic product (GDP) advanced at an annualized 2.2% pace in the second quarter, with separate data showing higher inflation-adjusted household spending in August.
In its third estimate, released Sept. 30, the agency raised its earlier second-quarter growth reading of 1.5% by 0.7 percentage point. The first quarter’s revised rate was 2.5%, leaving second-quarter growth slower despite the upward revision.
BEA said higher estimates for investment, consumer spending and government spending accounted for most of the change. Consumer spending, investment and exports contributed to second-quarter growth. Imports also increased, but because imports are deducted in the GDP calculation, their rise offset growth from other components.
BEA’s August personal income and outlays report put personal consumption expenditures (PCE) $190.8 billion higher in current dollars than a month earlier, a 0.9% increase. After adjusting for inflation, the gain was $92.8 billion, or 0.6%.
The PCE price index rose 0.3% from July and 3.4% from a year earlier. The GDP and spending figures cover different periods: the second quarter for output and August for PCE.
BEA’s calendar lists its advance estimate of third-quarter GDP and its September personal income and outlays report for Thursday, Oct. 29.
