Real GDP decreased at a seasonally adjusted annual rate of 0.6% during the second quarter of 2022, according to the Bureau of Economic Analysis’s “third” estimate. Real GDP decreased 1.6% in the first quarter of 2022.
The decrease in real GDP reflected decreases in private inventory investment, residential fixed investment, federal government spending, state, and local government spending, that were partly offset by increases in exports and consumer spending. Imports, which are a subtraction in the calculation of GDP, increased.
Consumption added 1.38 percentage points (pp) to growth; this follows a 0.91 pp addition during the first quarter of 2022. The increase in PCE was driven by services (led by health care) offset by decreases in durable goods (with the largest fall in recreational goods and vehicles) and nondurable goods (with the largest fall in food and beverages purchased for off-premises consumption). Inventories fell, subtracting 1.91 pp from GDP. Residential investment subtracted a total of 0.93 pp from GDP.
Business investment subtracted 0.01 pp from GDP. Investment in intellectual property added 0.46 pp to GDP while investment in structures subtracted 0.34 pp.
Government spending decreased, subtracting 0.32 pp from GDP. Federal and state-local government subtracted 0.22 and 0.06 pp from GDP, respectively.
Read the BEA release.