Updated: 25-Jul-24 09:45 ET
| Q2 GDP-Adv. |
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| Updated: 25-Jul-24 09:45 ET |
Highlights
- The Advance Q2 GDP report showed real GDP increasing at an annual rate of 2.8% (Briefing.com consensus 1.9%) following a 1.4% increase for the first quarter.
- The GDP Price Deflator was up 2.3% versus 3.1% in the first quarter.
Key Factors
- Personal consumption expenditure growth increased 2.3% versus 1.5% in the first quarter. PCE contributed 1.57 percentage points to growth.
- Gross private domestic investment was up 8.4% versus 4.4% in the first quarter. Gross private domestic investment contributed 1.46 percentage points to growth.
- Exports increased 2.0% versus 1.6% in the first quarter. Imports rose 6.9% versus 6.1% in the first quarter. Net exports subtracted 0.72 percentage points from growth.
- Government spending rose 3.1% versus 1.8% in the first quarter. Government spending contributed 0.53 percentage points to growth.
- Real final sales of domestic product, which excludes the change in private inventories, increased 2.0% versus 1.8% in the first quarter.
- The personal savings rate as a percentage of disposable personal income was 3.5% versus 3.8% in the first quarter.
- The PCE price index increased 2.6% versus 3.4% in the first quarter. The core PCE price index, which excludes food and energy, increased 2.9% versus 3.7% in the first quarter.
Big Picture
- The key takeaway from the report is that it didn't show any breakdown in consumer spending. In fact, consumer spending growth accelerated, increasing 2.3% on the heels of a 1.5% increase in the first quarter.
| Category | Q2 | Q1 | Q4 | Q3 | Q2 |
| GDP | 2.8% | 1.4% | 3.4% | 4.9% | 2.1% |
| Inventories (change) | $71.3B | $28.6B | $54.9B | $77.8B | $14.9B |
| Final Sales | 2.0% | 1.8% | 3.9% | 3.6% | 2.1% |
| PCE | 2.3% | 1.5% | 3.3% | 3.1% | 0.8% |
| Nonresidential Inv. | 5.2% | 4.4% | 3.7% | 1.4% | 7.4% |
| Structures | -3.3% | 3.4% | 10.9% | 11.2% | 16.1% |
| Equipment | 11.6% | 1.6% | -1.1% | -4.4% | 7.7% |
| Intellectual Property | 4.5% | 7.7% | 4.3% | 1.8% | 2.7% |
| Residential Inv. | -1.4% | 16.0% | 2.8% | 6.7% | -2.2% |
| Net Exports | -$1007.0B | -$960.3B | -$918.5B | -$930.7B | -$928.2B |
| Export | 2.0% | 1.6% | 5.1% | 5.4% | -9.3% |
| Imports | 6.9% | 6.1% | 2.2% | 4.2% | -7.6% |
| Government | 3.1% | 1.8% | 4.6% | 5.8% | 3.3% |
| GDP Price Index | 2.3% | 3.1% | 1.6% | 3.6% | 1.7% |
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