Real GDP increased at an annual rate of 2.1% in the second quarter of 2023, according to the “second” estimate released by the Bureau of Economic Analysis. 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, and federal government spending that were partly offset by decreases in exports, residential fixed investment, and private inventory investment. Imports, which are a subtraction in the calculation of GDP, decreased.
Consumption added 1.14 points (pp) to growth, following a 2.79 pp addition during the first quarter of 2023. The increase in PCE was driven by services such as those in the household consumption expenditures: housing and utilities, transportation services, and healthcare. Goods, including recreational goods and vehicles and nondurable goods, offset the decreases in motor vehicles and parts and clothing and footwear. Inventories decreased, subtracting 0.09 pp to GDP.
Business investment added 0.66 pp to GDP. Nonresidential fixed investment added 0.80 to GDP while residential subtracted 0.14 pp.
Government spending increased, adding 0.58 pp to GDP. Federal and state-local government added 0.08 and 0.50 pp to GDP, respectively.
Exports subtracted 1.2 pp from GDP, while imports added 1.04 pp.
Read the BEA release.