Real GDP grew at an annual rate of 3.0% in the second quarter of 2024, according to the “third” estimate released by the Bureau of Economic Analysis. Real GDP increased 1.6% in the first quarter of 2024, revised up.
The increase in real GDP primarily reflected increases in consumer spending, private inventory investment, and nonresidential fixed investment. Imports increased. Compared to the first quarter, the acceleration in real GDP in the second quarterly primarily reflected an upturn in private inventory investment and an acceleration in consumer spending. These movements were partly offset by a downturn in residential fixed investment.
Consumption added 1.90 percentage points at annual rates to growth, following a 1.30 pp addition in the first quarter of 2024. The increase in PCE was driven by services (1.27 pp) such as those in household consumption expenditure: healthcare (0.35 pp), housing and utilities (0.23 pp) and recreation services (0.5 pp) added to growth. Other services added 0.05 pp to real growth. Goods added 0.63 pp to real GDP which included motor vehicles and parts (0.16 pp), furnishings and durable household equipment (0.13 pp) and recreational goods and vehicles (0.11 pp). Clothing and footwear subtracted 0.06 pp from real GDP, respectively.
Business investment added 1.47 pp to real GDP. Nonresidential fixed investment added 0.53 pp, with equipment and intellectual property products adding 0.49 pp and 0.04 pp, respectively, and structures adding 0.10 pp. Residential fixed investment subtracted 0.11 pp. Transportation equipment, a part of equipment added 0.41 pp, while software, a part of intellectual property products, added 0.05 pp.
Government spending added 0.52 pp to real GDP. Federal government added 0.27 pp to real GDP while state and local added 0.25 pp.
Exports added 0.12 pp to real GDP while imports subtracted 1.01 pp.
Read the BEA release.
