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U.S. GDP climbs 1.3 percent in Q2

Federal consumption rises 2.2%; residential fixed investment climbs 3.8%.

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Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 1.3 percent in the second quarter of 2011, (that is, from the first quarter to the second quarter), according to the "advance" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.4 percent.

The Bureau emphasized that the second-quarter advance estimate released today is based on source data that are incomplete or subject to further revision by the source agency. The "second" estimate for the second quarter, based on more complete data, will be released on August 26, 2011.

The increase in real GDP in the second quarter primarily reflected positive contributions from exports, nonresidential fixed investment, private inventory investment, and federal government spending that were partly offset by a negative contribution from state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased.

The acceleration in real GDP in the second quarter primarily reflected a deceleration in imports, an upturn in federal government spending, and an acceleration in nonresidential fixed investment that were partly offset by a sharp deceleration in personal consumption expenditures.

Final sales of computers added 0.15 percentage point to the second-quarter change in real GDP after adding 0.08 percentage point to the first-quarter change. Motor vehicle output subtracted 0.12 percentage point from the second-quarter change in real GDP after adding 1.08 percentage points to the first-quarter change.

The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 3.2 percent in the second quarter, compared with an increase of 4.0 percent in the first. Excluding food and energy prices, the price index for gross domestic purchases increased 2.6 percent in the second quarter, compared with an increase of 2.4 percent in the first.

Real personal consumption expenditures increased 0.1 percent in the second quarter, compared with an increase of 2.1 percent in the first. Durable goods decreased 4.4 percent, in contrast to an increase of 11.7 percent. Nondurable goods increased 0.1 percent, compared with an increase of 1.6 percent. Services increased 0.8 percent, the same increase as in the first.

Real nonresidential fixed investment increased 6.3 percent in the second quarter, compared with an increase of 2.1 percent in the first. Nonresidential structures increased 8.1 percent, in contrast to a decrease of 14.3 percent. Equipment and software increased 5.7 percent, compared with an increase of 8.7 percent.

Real residential fixed investment increased 3.8 percent, in contrast to a decrease of 2.4 percent.

Real exports of goods and services increased 6.0 percent in the second quarter, compared with an increase of 7.9 percent in the first.  

Real imports of goods and services increased 1.3 percent, compared with an increase of 8.3 percent.

Real federal government consumption expenditures and gross investment increased 2.2 percent in the second quarter, in contrast to a decrease of 9.4 percent in the first. National defense increased 7.3 percent, in contrast to a decrease of 12.6 percent. Nondefense decreased 7.3 percent, compared with a decrease of 2.7 percent.

Real state and local government consumption expenditures and gross investment decreased 3.4 percent, the same decrease as in the first.

The change in real private inventories added 0.18 percentage point to the second-quarter change in real GDP after adding 0.32 percentage point to the first-quarter change. Private businesses increased inventories $49.6 billion in the second quarter, following increases of $49.1 billion in the first quarter and $38.3 billion in the fourth.

Real final sales of domestic product -- GDP less change in private inventories -- increased 1.1 percent in the second quarter, after increasing less than 0.1 percent.

Gross domestic purchases

Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 0.7 percent in the second quarter, the same increase as in the first.

Disposition of personal income

Current-dollar personal income increased $132.5 billion (4.2 percent) in the second quarter, compared with an increase of $251.9 billion (8.3 percent) in the first.

Personal current taxes increased $22.6 billion in the second quarter, compared with an increase of $122.3 billion in the first.

Disposable personal income increased $109.9 billion (3.9 percent) in the second quarter, compared with an increase of $129.6 billion (4.7 percent) in the first.

Real disposable personal income increased 0.7 percent, the same increase as in the first quarter.

Personal outlays increased $83.5 billion (3.1 percent) in the second quarter, compared with an increase of $153.5 billion (5.8 percent) in the first.

Personal saving -- disposable personal income less personal outlays -- was $590.6 billion in the second quarter, compared with $564.3 billion in the first.

The personal saving rate -- saving as a percentage of disposable personal income -- was 5.1 percent in the second quarter, compared with 4.9 percent in the first.

For a comparison of personal saving in BEA’s national income and product accounts with personal saving in the Federal Reserve Board’s flow of funds accounts and data on changes in net worth, go to www.bea.gov/national/nipaweb/Nipa-Frb.asp.

Current-dollar GDP

Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 3.7 percent, or $136.0 billion, in the second quarter to a level of $15,003.8 billion. In the first quarter, current-dollar GDP increased 3.1 percent, or $112.8 billion.