Looking at growth rates (instead of the direction and degree of component revisions), strength for the second quarter was broad based in inventory investment, net exports, nonresidential fixed investment and residential investment. Personal consumption also was healthy.
Chain-weighted prices advance 2.1 percent annualized, equaling the prior estimate and forecasts and compared to the first quarter number of 1.3 percent.
The general picture of the second quarter has not changed. Second quarter strength to a notable degree was a rebound from the weather-related decline in the first quarter. This was especially true for inventories and construction components. Nonetheless, the quarter was moderately favorable. However, the rebound effect will show up little if at all in the third quarter and a more moderate number should be expected.
(Previous Report) GDP growth for the second quarter was higher than expected. The second estimate for second quarter GDP growth came in at 4.2 percent annualized versus a 4.0 percent forecast and coming off a 2.1 percent weather related drop in the first quarter. With this second estimate for the second quarter, the general picture of economic growth remained the same; the increase in nonresidential fixed investment was larger than previously estimated, while the increase in private inventory investment was smaller than previously estimated. Real final sales of domestic product-GDP less change in private inventories-increased 2.8 percent in the second quarter, in contrast to a decrease of 1.0 percent in the first. Real final sales to domestic purchasers gained 3.1 percent versus 0.7 in the first quarter. Chain-weighted prices gained 2.1 percent annualized, compared to the consensus for 2.0 percent and the first quarter number of 1.3 percent.
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