The Bureau of Economic Analysis’s (BEA) second estimate left Q2 real gross domestic product growth unchanged and in line with expectations of an annualized rate of 1.5%, down from 2.1% in Q1. Components of GDP were also little changed. Real final sales to private domestic purchasers were revised up to 4.2% (from 3.9%), led by consumer spending and business investment. This increase was offset by lower government spending (0.16% decrease quarter-over-quarter) and a wider trade deficit.
The ABA Office of the Chief Economist reads this as resilient private demand. Strong increases in real final sales reflect continued appetite for consumer and commercial credit.
