GDP grew by 2.1% in the second quarter, beating expectations
The US economy grew more than expected in the second quarter.
<p class = "canvas-atom canvas-text Mb (1.0 em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = "Here were the main numbers from & nbsp; Bureau of Economic Analysis & # 39; Friday Report & nbsp; on Gross Domestic Product, compared to Bloomberg Collective Consensus Data. "data response time =" 1[ads1]2 "> Here were the key figures from the Bureau of Economic Analysis & # 39 , Friday report on gross domestic product, compared to Bloomberg aggregate consensus data.
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Gross Domestic Product (GDP): 2.1% vs.1.8% expected and 3.1% in Q1
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Personal consumption: 4.3% vs. 4.0% expected and 0.9% in Q1 Core PCE QoQ: 1.8% vs. 2.0% expected and 1.2% in the first quarter
Personal consumption was a leading contributor to economic expansion during the quarter, with consumption leaping with the largest amount since 2014.
Prior to Friday's report Consensus economists had largely expected a resurgence in Consumer Data to support growth in the second quarter, marking a setback from an anemic 0.9% increase in personal consumption from the beginning of the year. Consumer spending accounts for about 70% of US economic activity.
<p class = "canvas-atom canvas-text Mb (1.0 em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = "In testimony to the congress previously this month, Federal Reserve Leader Jerome Powell called & nbsp; consumer who used one of the more "reliable drivers of growth in the economy," and added that consumer activity was "running now in a solid pace ”after a withdrawal in the first quarter. For example, retail sales increased by 0.4% on a monthly basis in each of April, May, and June, after falling in part of the first quarter. "Data-response time =" 19 "> In testimony to Congress earlier this month called the Federal Reserve leader Jerome Powell consumer spending for one of the more "reliable drivers of growth in the economy", adding that consumer activity is now "driving at a steady pace" following a downturn in the first quarter. For example, retail sales increased by 0.4% on a monthly basis in each of April, May, and June, having declined in part of the first quarter.
However, GDP was reduced both for the previous quarter and last year. This had been expected, as ongoing geopolitical tensions took a bit of trade-related data, and as business investment became softer in the period.
In the report, the BEA noted that the second quarter's deceleration in real GDP "reflected downturns in inventory investments, exports, and offshore fixed investment." However, these effects were partially offset by an acceleration in personal spending (PCE) as well as in federal
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<p class = "canvas atom teacher text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" t ext "content =" The yawning domestic trade deficit & nbsp; extended to a five month height in May & nbsp; while the April gap was revised to be larger than previously reported, according to data from the Commerce Department released earlier in July. While the monthly reports have been cumbersome due to new tariff policy, the data suggested that net exports in recent months were burdened by the economic expansion in the second quarter. "Data React =" 33 "> The yielded domestic trade deficit widened to a five-month high in May, while April's gap was revised to be larger than previously reported, according to the Commerce Department data earlier in July. bulky due to new customs policy, the data net exports in recent months suggested to weigh on economic expansion in the second quarter.
<p class = "canvas-atom canvas text Mb (1.0 em) Mb (0) – sm Mt (0.8 em) – sm "type =" text "content =" This post breaks. Check back for updates. "data-reactid =" 34 "> This post breaks. Check back for updates.
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<p class =" canvas-atom canvas text Mb (1.0 em) Mb (0 ) – sm Mt (0.8em) – sm "type =" text "content =" Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck "data-reactid =" 36 "> Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck
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