The United States’ gross domestic product (GDP) expanded at a 2.3% annual rate in the second quarter; boosted by stronger household spending and exports.
On Thursday July 30th, the Bureau of Economic Analysis (BEA) released its third and final estimate of the U.S. GDP for the first quarter of 2015. The world’s largest economy grew at an annual rate of 2.3% in Q2 2015. In the first quarter, revised real GDP increased 0.6%. (Source: Bureau of Economic Analysis, July 30, 2015.)
The growth in GDP was helped by a 2.9% increase in personal consumption expenditures, compared to an increase of 1.8 % in the first quarter. Among consumption, durable goods increased 7.3%, compared to an increase of two percent. Nondurable goods increased 3.6%.
Surprisingly, real exports of goods and services increased 5.3% in the second quarter, in contrast to a decrease of six percent in the first three months of the year. Real imports of goods and services increased 3.5%, compared to an increase of 7.1% in the previous quarter.
Notably, a 0.6% decrease in the investment along with 4.1% decrease in investment spending contributed significantly to a slowdown in the nation’s GDP. Federal government consumption expenditures and gross investment declined 1.1% in the second quarter as well.
The U.S. department of commerce releases the change in GDP about 30 days after the quarter ends. The next GDP report is scheduled to be released on October 29, 2015.