Real gross domestic product (GDP) increased 2.0 percent in the second quarter of 2019, according to the “second” estimate released by the Bureau of Economic Analysis. The growth rate was 0.1 percentage point lower than the “advance” estimate released in July. In the first quarter, real GDP rose 3.1 percent.
The second-quarter increase in real GDP reflected increases in consumer spending and government
spending, while inventory investment, exports, housing investment, and business investment
decreased. Imports, which are a subtraction in the calculation of GDP, increased.
The increase in consumer spending reflected increases in both goods and services that were
widespread across major categories. The increase in government spending reflected increases in both
federal and state and local government spending.
The decrease in inventory investment reflected decreases in manufacturing, retail trade, and
wholesale trade industries. Goods led the decrease in exports.
Updates to GDP
The revision to GDP growth reflected downward revisions to state and local government spending,
exports, inventory investment, and housing investment. These revisions were partly offset by an
upward revision to consumer spending.
Corporate profits from current production
Profits increased 5.3 percent at a quarterly rate in the second quarter after decreasing 3.8 percent in the first quarter.
- Profits of domestic nonfinancial corporations increased 4.0 percent after decreasing 9.0
- Profits of domestic financial corporations increased 1.0 percent after increasing 5.8
- Profits from the rest of the world increased 11.7 percent after increasing 1.5 percent.
Corporate profits increased 2.7 percent in the second quarter from one year ago.
For more information, read the full report.