U.S. GDP Revised Lower to 1.3% in Q2; Record Drought Hits Farms, Imports Rise
Tweet Send to a Friend
U.S. gross domestic product (GDP) for the second-quarter was revised 0.4 points lower for the second-quarter, as the Commerce Department took a harder look at the effects of drought on domestic production.
The third estimate for second-quarter GDP put it at 1.3 percent, revised from 1.7 percent prior. Consensus estimates were looking for a flat revision to 1.7 percent.
As the Commerce Department put it: "The increase in real GDP in the second quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, nonresidential fixed investment, and residential fixed investment that were partly offset by negative contributions from private inventory investment and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased."
Farm inventories were said to drop $5.3 billion in the second-quarter, from a drop of $1 billion in the prior quarter.
Additions to GDP from motor vehicle output was 0.2 points, from a first-quarter addition of 0.72 points.
One positive data point from the read was post-tax corporate profits, which rose by 1.1 points to 2.2 percent. The number is notably higher than a dip of 8.6 percent for the first quarter.
Real gross national product -- the goods and services produced by the labor and property supplied by U.S. residents -- increased 2.1 percent in the second quarter, compared with an increase of 0.6 percent in the first. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which increased $27.4 billion in the second quarter after decreasing $44.1 billion in the first; in the second quarter, receipts increased $3.5 billion, and payments decreased $24.0 billion.
U.S. markets are higher amid a wider than expected drop in unemployment claims last week.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The third estimate for second-quarter GDP put it at 1.3 percent, revised from 1.7 percent prior. Consensus estimates were looking for a flat revision to 1.7 percent.
As the Commerce Department put it: "The increase in real GDP in the second quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, nonresidential fixed investment, and residential fixed investment that were partly offset by negative contributions from private inventory investment and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased."
Farm inventories were said to drop $5.3 billion in the second-quarter, from a drop of $1 billion in the prior quarter.
Additions to GDP from motor vehicle output was 0.2 points, from a first-quarter addition of 0.72 points.
One positive data point from the read was post-tax corporate profits, which rose by 1.1 points to 2.2 percent. The number is notably higher than a dip of 8.6 percent for the first quarter.
Real gross national product -- the goods and services produced by the labor and property supplied by U.S. residents -- increased 2.1 percent in the second quarter, compared with an increase of 0.6 percent in the first. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which increased $27.4 billion in the second quarter after decreasing $44.1 billion in the first; in the second quarter, receipts increased $3.5 billion, and payments decreased $24.0 billion.
U.S. markets are higher amid a wider than expected drop in unemployment claims last week.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- May CPI 0.1% vs 0.2% Expected, Ex-Food/Energy 0.1% vs 0.2%
- May Housing Starts 914k vs 950k Expected
- June U of M Confidence 82.7 vs 84.5 Expected
Create E-mail Alert Related Categories
Economic Data
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
