U.S. economy up 4.6 percent in second quarter revised data
The U.S. Commerce Department on Friday revised up its estimate for the real gross domestic product (GDP) of the United States in the second quarter to a growth of 4.6 percent annualized, significantly higher than a contraction of 2.1 percent in the first quarter.
The growth was higher than market expectation. This is the agency's third estimate for the second quarter's GDP growth. The second estimate in the quarter was 4.2 percent annualized, compared to a 4 percent advance estimate.
The Commerce Department said in a statement that the accelerated GDP growth in the quarter primarily reflected upturns in exports and private inventory investment and accelerations in personal consumption expenditures, nonresidential fixed investment and state as well as local government spending.
Real personal consumption expenditures increased 2.5 percent in the quarter, compared with an increase of 1.2 percent in the first. Real non-residential fixed investment rose 9.7 percent in the quarter, much higher than the 1.6 percent rise in the first. Exports of goods and services advanced 11.1 percent, in contrast to a decrease of 9.2 percent in the previous quarter.
The strong labor market performance during the quarter was supported by a surge in gross domestic income (GDI), which measures the income side of the growth ledger.
GDI increased 5.2 percent, revised up from the previously estimate of 4.7 percent and in contrast to a decrease of 0.8 percent in the first quarter.
The economy expanded at the fastest pace since the second quarter of 2010, suggesting the economic recovery was more durable after growth slumped in the first quarter because of an unusually cold winter.
Profits from current production increased 164.1 billion U.S. dollars in the second quarter, in contrast to a decrease of 201.7 billion dollars in the previous quarter.