US GDP Growth Revised Up to 3.7%

The US economy expanded an annualized 3.7 percent on quarter in the three months to June, according to the second estimate released by the Bureau of Economic Analysis. Figures came better than a 2.3 percent gain initially reported and beat market expectations due to higher business spending and quicker build up of inventories.

Nonresidential fixed asset investment rose 3.2 percent, compared to 0.6 percent drop in advance estimate. Investment in nonresidential structures grew 3.1 percent compared to an advance 1.6 percent drop and equipment investment fell less than anticipated by 0.4 percent (-4.1 percent in the advance estimate). Investment in intellectual property products increased 8.6 percent, compared to an advance estimate of 5.5 percent and residential fixed investment went up 7.8 percent, higher than a 6.6 percent gain in the advance estimate. 

The accumulation of inventories was also revised upwards to $121.1 billion from $110.0 billion, thus contributing 0.22 percent to growth instead of subtracting 0.08 percentage point as initially reported. 

Personal consumption expenditure increased 3.1 percent compared to a 2.9 percent gain in the advance estimate while federal consumption and investment posted no growth, compared to a 1.1 percent drop in the advance estimate. 

Exports of goods and services went up 5.2 percent, slightly below a 5.3 percent gain in the advance estimate.  Imports rose 2.8 percent compared to 3.5 percent gain initially reported. As a result net exports contributed 0.23 percentage point to the growth.

US GDP Growth Revised Up to 3.7%

US Bureau of Economic Analysis | Joana Taborda |
8/27/2015 2:51:38 PM