GDP Up 2.6% in 2d Quarter as Prices Rose Modestly

Real gross domestic product (GDP) increased at an 2.6% annual rate in the second quarter of 2017 after increasing 1.2% (revised) in the first quarter, the Bureau of Economic Analysis estimated.  

The increase in real GDP in the second quarter re­flected positive contributions from consumer spend­ing, nonresidential fixed investment, exports, and federal government spending that were partly offset by negative contributions from private residential fixed investment, inventory investment, and state and local government spending. Imports, which are a subtrac­tion in the calculation of GDP, increased.

Prices of goods and services purchased by U.S. resi­dents increased 0.8% in the second quarter after increasing 2.6% (revised) in the first quar­ter. Energy prices turned down in the second quarter and food prices accelerated. Excluding food and energy, prices for gross domestic purchases prices increased 1.3% in the second quarter after increasing 2.3% (revised) in the first quarter.

Real disposable personal income (DPI) increased 3.2% after increasing 2.8% (revised). Cur­rent-dollar DPI increased 3.5% after increasing 5.1 (revised). The differences in the move­ments in real DPI and current-dollar DPI reflected a deceleration in the implicit price deflator for con­sumer spending, which is used to deflate DPI.

The personal saving rate remained relatively stable at 3.8% in the second quarter; in the first quarter, the rate was 3.9% (revised).

You can see the report here.

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