US Economy Expands 1.5% With Spending, Investment Revised Up
The US economy expanded at an unrevised 1.5% pace in the second quarter, though underlying details showed stronger consumer spending and business investment than initially reported.
The annualized gain in inflation-adjusted gross domestic product compares with a 2.1% advance in the first quarter, according to the second estimate issued Wednesday by the Bureau of Economic Analysis.
Consumer spending, which comprises more than two-thirds of economic activity, increased an annualized 3.4%, stronger than the initially estimated 3.2% gain. Nonresidential fixed investment climbed at an 8.5% pace.
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A narrower gauge of underlying demand, final sales to private domestic purchasers, rose a revised 4.2% in the second quarter — the strongest in more than three years and compared with an initial estimate of 3.9%. The measure excludes net exports, inventories and government spending.
Government spending declined an annualized 1% in the second quarter, reflecting a steep drop in nondefense-related outlays.
Meanwhile, the personal consumption expenditures price index minus food and energy was revised up to an annualized 3.6% rate from 3.4%. Separate data out Wednesday showed a 0.2% increase in the so-called core PCE price gauge in July from the prior month.
That report also showed no change in real consumer spending during the month after more robust increases in the prior two months.
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Bloomberg News provided this article. For more articles like this please visit bloomberg.com.
