Real gross domestic product (GDP) increased at an annual rate of 1.4% in the second quarter of 2016, according to the ‘third’ estimate released by the Bureau of Economic Analysis (BEA).
The ‘second’ estimate from the BEA originally suggested a growth of 1.1%.
However, the general picture of economic growth between the second and third estimates remained largely unchanged, with the primary difference seeing nonresidential fixed investment increase in Q2 compared to decrease in the first estimate.
The acceleration in real GDP in the second quarter primarily reflected an acceleration in personal consumption expenditures (PCEs) and upturns in nonresidential fixed investment and in exports. These were partly offset by a larger decrease in private inventory investment, downturns in state and local government spending and in residential fixed investment, and an upturn in imports.
Profits from current production, specifically corporate profits with inventory valuation adjustment and capital consumption adjustment, decreased $12.5bn in the second quarter, in contrast to an increase of $66bn in the first.