GDP Increased 2.1 Percent in Second Quarter, While Exports Decreased and Imports Increased.
The Bureau of Economic Analysis (BEA) released the second quarter Gross Domestic Product (GDP) numbers estimating the GDP increased 2.1 percent for the period. The 2.1 percent increase is higher than economist’s expectations for the number, but lower than the previous quarter’s 3.1 percent growth. “The increase in real GDP in the second quarter reflected positive contributions from personal consumption expenditures (PCE) [and] government spending that [balanced out decreases in] private inventory investment, exports, nonresidential fixed investment” and increases in imports. Perhaps partly explaining the increase in consumer spending is the news that the month of June saw “personal income increased $83.6 billion (0.4 percent)” due to “increases in wages and salaries [and] government social benefits to persons.” Secretary of Commerce Wilbur Ross commented on the report that the “economy is growing strong and… is poised to continue expanding.” The White House added that while the results indicate a strong economy, they estimate “that the problems at Boeing subtracted 0.4 percentage point from second quarter.”