Real gross domestic product (GDP) increased 2.0 percent in the second quarter of 2019, according to the “third” estimate released by the Bureau of Economic Analysis. The growth rate was the same as in the “second” estimate released in August. 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, business investment, and housing investment decreased. Imports, which are a subtraction in the calculation of GDP, decreased.
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 unrevised GDP growth rate primarily reflected offsetting downward revisions to consumer spending and business investment and upward revisions to government spending and exports.
Corporate profits from current production
Profits increased 3.8 percent at a quarterly rate in the second quarter after decreasing 3.8 percent in the first quarter.
- Profits of domestic nonfinancial corporations increased 3.2 percent after decreasing 9.0 percent.
- Profits of domestic financial corporations increased 0.6 percent after increasing 5.8 percent.
- Profits from the rest of the world increased 7.7 percent after increasing 1.5 percent. Corporate profits increased 1.3 percent in the second quarter from one year ago.
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