GDP Rose by 2.3 Percent in Second Quarter

Real GDP for the second quarter grew at an annual rate of 2.3 percent according to the Bureau of Economic Analysis’s advance estimate. The growth reflected acceleration in personal consumption expenditures and net exports, as well as increases in state and local government spending.

Personal consumption was the largest positive contributor to GDP – contributing 2.0 percent, up from a 1.2 percent contribution in the first quarter. Nonresidential fixed investment was a net drag of 0.1 percent, after contributing 0.2 percent in the first quarter.

Exports of goods and services increased 5.3 percent, after decreasing 6.0 percent in the first quarter. Imports of goods and services increased 3.5 percent after a 7.1 percent increase in the first. Overall, net exports contributed 0.1 percent to GDP in the second quarter, in contrast to a 1.9 percent drag in the first.

Federal government consumption expenditures fell 1.1 percent, after a 1.1 percent increase in the previous quarter. Government consumption added 0.1 percent to GDP.

Read the BEA release.