NATNews Blog > July 2017 > GDP increases at annual rate of 2.6% in Q2

    GDP increases at annual rate of 2.6% in Q2

    7/31/2017 9:38:34 AM
    Real gross domestic product increased at an annual rate of 2.6 percent in the second quarter of 2017, according to the advance estimate released by the Bureau of Economic Analysis (BEA). In the first quarter, real GDP increased 1.2 percent.
     
    BEA emphasized that the second-quarter advance estimate released July 28 is based on source data that are incomplete or subject to further revision by the source agency. The second estimate for the second quarter, based on more complete data, will be released on Aug. 30.
     
    The increase in real GDP in the second quarter reflected positive contributions from personal consumption expenditures (PCE), nonresidential fixed investment, exports, and federal government spending that were partly offset by negative contributions from private residential fixed investment, private inventory investment, and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased.
     
    The estimates released today reflect the results of the annual update of the national income and product accounts (NIPAs) in conjunction with the "advance" estimate of GDP for the second quarter of 2017. The update covers the first quarter of 2014 through the first quarter of 2017. For more information, see information on the "2017 Annual Update" on BEA’s Web site. Additionally, the August Survey of Current Business will contain an article that describes the results in detail.
     
    The acceleration in real GDP growth in the second quarter reflected a smaller decrease in private inventory investment, an acceleration in PCE, and an upturn in federal government spending. These movements were partly offset by a downturn in residential fixed investment and decelerations in exports and in nonresidential fixed investment.
     
    Current-dollar GDP increased 3.6 percent, or $169.0 billion, in the second quarter to a level of $19,226.7 billion. In the first quarter, current-dollar GDP increased 3.3 percent (revised), or $152.2 billion.
     
    The price index for gross domestic purchases increased 0.8 percent in the second quarter, compared with an increase of 2.6 percent in the first quarter (revised). The PCE price index increased 0.3 percent, compared with an increase of 2.2 percent. Excluding food and energy prices, the PCE price index increased 0.9 percent, compared with an increase of 1.8 percent.
     
     
    Personal Income
     
    Current-dollar personal income increased $118.9 billion in the second quarter, compared with an increase of $217.6 billion in the first quarter (revised). The deceleration in personal income primarily reflected decelerations in wages and salaries, in government social benefits, in nonfarm proprietors’ income, and in rental income, and downturns in personal interest income and in farm proprietors’ income. These movements were offset by an upturn in personal dividend income.
     
    Disposable personal income increased $122.1 billion, or 3.5 percent, in the second quarter, compared with an increase of $176.3 billion, or 5.1 percent, in the first quarter (revised). Real disposable personal income increased 3.2 percent, compared with an increase of 2.8 percent.
     
    Personal saving was $546.8 billion in the second quarter, compared with $553.0 billion in the first quarter (revised). The personal saving rate – personal saving as a percentage of disposable personal income – was 3.8 percent in the second quarter, compared with 3.9 percent in the first.
     
    For more in-depth information and to view the charts, visit: https://bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm