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GDP Growth Slows in Second Quarter, But Consumer Spending Surges
['Craig Bannister', 'Managing Editor']
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The growth in Real Gross Domestic Product (GDP) slowed in the second quarter of this year, but increased consumer spending and a reduction in government spending provided bright spots, the initial estimate released by the Commerce Department on Thursday reveals.
Adjusted for inflation, Real GDP increased 1.5% in the second quarter after rising 2.1% in the first quarter, according to the latest estimate by U.S. Bureau of Economic Analysis.
On the consumer side, positive signs include a healthy increase in real final sales to private domestic purchasers.
The sum of consumer spending and gross private fixed investment, this economic measure increased 3.9% in the second quarter, more than doubling the first quarter’s 1.7% gain.
While Thursday’s report puts second quarter GDP grow at 1.5%, it is merely what the Commerce Department calls an “Advance Estimate.”