Thursday, August 29, 2013 9:07:33 AM
GDP - better than expected
Released On 8/29/2013 8:30:00 AM For Q2:13
Prior Consensus Consensus Range Actual
Real GDP - Q/Q change - SAAR 1.7 % 2.2 % 2.0 % to 2.5 % 2.5 %
GDP price index - Q/Q change - SAAR 0.7 % 0.7 % 0.7 % to 0.8 % 0.8 %
Highlights
Real GDP growth for the second quarter was raised to an annualized rate of 2.5 percent compared to the initial estimate of 1.7 percent and compared to a fourth quarter rise of 1.1 percent. Expectations were for 2.2 percent.
Final sales of domestic product showed a revised gain of 1.9 percent versus the advance estimate of 1.3 percent. This series increased 0.2 percent in the first quarter. Final sales to domestic producers (which exclude net exports) was nudged down to 1.9 percent versus the initial estimate of 2.0 percent. This followed a 0.5 percent gain in the first quarter.
The upward revision to GDP growth was mainly due to a sharp upward revision to net exports. Also, there were improvements to inventories and nonresidential structures investment. Government purchases were modestly weaker. Other components were little changed.
Turning to comparisons to the first quarter, the increase in real GDP in the second quarter primarily reflected positive contributions from personal consumption expenditures, exports, private inventory investment, nonresidential fixed investment, and residential fixed investment that were partly offset by a negative contribution from federal government spending. Imports, which are a subtraction in the calculation of GDP, increased.
Headline inflation for the GDP price index was revised up to 0.8 percent compared to the advance estimate of 0.7 percent annualized inflation rate. When excluding food and energy, inflation for the second quarter was unrevised at 1.1 percent.
Overall, GDP growth for the second quarter was better than earlier believed. Compared to past recoveries, the latest growth rates are not inspiring but the upward revision may add to Fed debate to gradually start to taper asset purchases.
Released On 8/29/2013 8:30:00 AM For Q2:13
Prior Consensus Consensus Range Actual
Real GDP - Q/Q change - SAAR 1.7 % 2.2 % 2.0 % to 2.5 % 2.5 %
GDP price index - Q/Q change - SAAR 0.7 % 0.7 % 0.7 % to 0.8 % 0.8 %
Highlights
Real GDP growth for the second quarter was raised to an annualized rate of 2.5 percent compared to the initial estimate of 1.7 percent and compared to a fourth quarter rise of 1.1 percent. Expectations were for 2.2 percent.
Final sales of domestic product showed a revised gain of 1.9 percent versus the advance estimate of 1.3 percent. This series increased 0.2 percent in the first quarter. Final sales to domestic producers (which exclude net exports) was nudged down to 1.9 percent versus the initial estimate of 2.0 percent. This followed a 0.5 percent gain in the first quarter.
The upward revision to GDP growth was mainly due to a sharp upward revision to net exports. Also, there were improvements to inventories and nonresidential structures investment. Government purchases were modestly weaker. Other components were little changed.
Turning to comparisons to the first quarter, the increase in real GDP in the second quarter primarily reflected positive contributions from personal consumption expenditures, exports, private inventory investment, nonresidential fixed investment, and residential fixed investment that were partly offset by a negative contribution from federal government spending. Imports, which are a subtraction in the calculation of GDP, increased.
Headline inflation for the GDP price index was revised up to 0.8 percent compared to the advance estimate of 0.7 percent annualized inflation rate. When excluding food and energy, inflation for the second quarter was unrevised at 1.1 percent.
Overall, GDP growth for the second quarter was better than earlier believed. Compared to past recoveries, the latest growth rates are not inspiring but the upward revision may add to Fed debate to gradually start to taper asset purchases.
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