Second Quarter GDP Grew 2.6%

Real GDP grew at a seasonally adjusted annual rate of 2.6% during the second quarter of 2017, according to the Bureau of Economic Analysis’s “advance” estimate, up from 1.2% in the first quarter. The acceleration in real GDP reflected positive contributions from personal consumption expenditures, nonresidential fixed investment, exports, and federal government spending. These were partly offset by negative contributions from private residential fixed investment, private inventory investment, and state and local government spending.

Consumption accounted for 1.9% of the gain, up from 1.3% during the first quarter. Fixed investment slowed after a high previous quarter, adding a total of 0.4% to GDP. Inventories did not have a net impact on GDP this quarter after subtracting 1.5% in the first.

Government spending increased during the quarter, as federal government spending led with a 0.2% contribution to the GDP increase, while state and local spending saw a marginal decrease.

Net exports were positive, adding 0.2% to GDP.

Read the BEA release.