The US economy grew an annualized 2.1% in the second quarter, revised from the preliminary 2.4% figure and down from the 2.0% expansion in the first quarter, the second estimate showed.
There were downward revisions to private inventory investment and non-residential fixed investment, which were partially offset by an upward revision to state and local government spending.
In the period from April to June, growth rates slowed both for consumer spending (1.7% against 4.2% in the first quarter) and for government consumption (3.3% against 5.0%), while non-residential fixed investment increased the most in almost a year (6.1% versus 0.6%). Percent).
Meanwhile, exports registered the biggest decline since the aftermath of the COVID-19 outbreak in the second quarter of 2020 (-10.6% vs 7.8 percent) and residential fixed investment fell for the ninth consecutive period (-3.6 percent percent vs -4.0 percent). Private investment in inventory also contributed negatively to GDP.
Personal consumer expenditures were revised up slightly to 1.7% from the 1.6% advance estimate but were slower than a 4.2% increase in Q1.
The GDP price index was revised down to a 2% gain from the advance estimate of a 2.2% increase.
The third estimate of Q2 GDP is scheduled to be released on Sept. 28.
The quarterly measure of gross domestic product, or GDP, is released by the US Bureau of Economic Analysis at three stages, with the advance reading about a month after the end of a quarter, followed by second and third readings for the same quarter two and three months after quarter-end.
The data are broken down by each of the GDP components: consumption, fixed investment (which includes residential and nonresidential investment and inventories), government spending, and net exports (exports minus imports). The report also includes prices measures for the overall reading and the categories.
Strong GDP growth is a positive for stocks, but a negative for bonds, especially if it is accompanied by sharp inflation gains.