- Prelim reading was +3.0%
- Final Q1 was +1.4% (unrevised)
Details:
- Consumer spending +2.8% vs +2.9% second reading
- GDP final sales +1.9% vs +2.2% second reading
- GDP deflator +2.5% vs +2.5% second reading
- Core PCE +2.8% vs +2.8% second reading
- Corporate profits after tax +3.5% vs +1.7% second reading
- Business investment 3.9% from 3.9% second reading
The US economy maintained its 3.0% annualized growth rate in Q2, according to the final estimate released by the Commerce Department on Thursday. This figure is unchanged from the preliminary report and aligns with economists’ expectations.
Consumer spending, a key driver of economic activity, was revised slightly downward to 2.8% from the initially reported 3.0%. Despite the small downward adjustment, this still represents a significant improvement from the 1.9% growth seen in Q1.
Business investment figures saw a more notable revision, dropping to 3.9% from the 4.7% reported in the preliminary estimate. That should be a drag in the coming quarters and reflects less confidence in the outlook than believed. That was balanced out partly by strong corporate profits.
Contributors and subtractors to the 3.0% growth:
- Consumption: +1.90% (vs +1.57% second reading, last quarter +0.98%)
- Government: +0.52% (vs +0.53% second reading, last quarter +0.31%)
- Net International trade: -0.90% (vs -0.72% second reading, last quarter -0.65%)
- Inventories: +1.05% (vs +0.82% second reading, last quarter -0.42%)
Inventories should be a drag going forward but strong consumption and government spending are the real drivers of US GDP growth.