Real gross domestic product (GDP) increased 2.5 percent in the second quarter of 2013 after increasing 1.1 percent in the first quarter, according to the “second” estimate released by the Bureau of Economic Analysis (BEA). The second-quarter growth rate was revised up 0.8 percentage point from the advance estimate released in July.
GDP growth highlights
The second-quarter acceleration reflected the following:
• An upturn in goods exports; nonautomotive consumer goods accelerated, and civilian aircraft and parts turned up.
• An upturn in business investment, mainly in power and communication structures.
These contributions to the acceleration in economic growth were offset in part by an acceleration in imports; autos, engines, and parts turned up. In addition, inventory investment and consumer spending slowed.
The revision to second-quarter GDP growth reflected:
• An upward revision to exports of goods, mainly nonautomotive capital goods, industrial supplies and materials, and nonautomotive consumer goods.
• A downward revision to imports; nonautomotive consumer goods and petroleum products were the top contributors.
• An upward revision to inventory investment, reflecting upward revisions to inventory investment at auto dealerships and general merchandise stores.
Offsetting these upward revisions to GDP growth, state and local government spending was revised down. For more information about the second-quarter revisions, see the technical note.
• Profits of nonfinancial corporations rose 4.2 percent after falling 0.3 percent.
• Profits of financial corporations increased 3.3 percent after decreasing 0.9 percent.
• Profits from the “rest of the world” rose 3.4 percent after falling 4.7 percent.
Compared with second quarter of 2012, second-quarter corporate profits rose 5.0 percent.
For more on GDP, read the full report.