Latest Figures on U.S. Economic Growth Are In: Hereís What You Need to Know

Sep. 27, 2013 9:30am Becket Adams

Real gross domestic product (GDP), the total output of goods and services in the U.S., increased at an annual rate of 2.5 percent in the second quarter of 2013, the Bureau of Economic Analysis announced Thursday.
This is the third and final GDP revision for Q2 (April-June) and a definite improvement over Q1ís revised increase of 1.1 percent.
Growth in the second quarter primarily reflected ďpositive contributions from personal consumption expenditures (PCE), exports, nonresidential fixed investment, private inventory investment and residential fixed investment that were partly offset by a negative contribution from federal government spending,Ē the report reads.
Government spending fell in Q2 by only 1.6 percent, compared to Q1′s decrease of 8.4 percent. Meanwhile, state and local government spending increased by 0.4 percent, compared to Q1′s decrease of 1.3 percent.
Imports, a subtraction in the calculation of GDP, increased by 6.9 percent
ďThe acceleration in real GDP in the second quarter primarily reflected upturns in exports and in nonresidential fixed investment,Ē the report states, ďa smaller decrease in federal government spending, and an upturn in state and local government spending that were partly offset by an acceleration in imports and decelerations in private inventory investment and in PCE.Ē
Real personal consumption expenditures held steady at 1.8 percent in the second quarter, compared to the increase of 2.3 percent in the first, the report adds.
Durable goods in Q2ís third revision increased 6.2 percent, up from Q1ís increase of 5.8 percent. Non-durable goods were also revised lower to 1.6, down from 2.7 percent. Services, on the other hand, were revised in the second revision to 1.2, down from Q1ís increase of 1.5 percent.
Hereís Q2ís third GDP revision broken down by its components [courtesy Zero Hedge]:

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