Real GDP increased at an annual rate of 2.4% during the second quarter of 2023, according to the “advance” estimate released by the Bureau of Economic Analysis’s. Real GDP increased 2.0% in the first quarter of 2023.
The increase in real GDP reflected increases in consumer spending, nonresidential fixed investment, state and local government spending, private inventory investment, and federal government spending that were partly offset by decreases in exports and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, decreased.
Consumption added 2.4 points (pp) to growth; this follows a 0.4 pp addition during the first quarter of 2023. The increase in PCE was driven by services (led by durable goods and vehicles and parts) offset by decreases in clothing and footwear. Inventories increased, adding 0.14 pp to GDP. Residential investment subtracted a total of 0.16 pp from GDP.
Business investment added 0.83 pp from GDP. Investment in intellectual property added 0.21 pp to GDP while residential subtracted 0.16 pp.
Government spending increased, adding 0.45 pp to GDP. Federal and state-local government added 0.06 and 0.39 pp to GDP, respectively.
Read the BEA release.
