U.S. GDP Grows 1.7 Percent in Q2 2013
Commercial construction investment grows 6.8 percent; residential grows 13.4 percent.
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 1.7 percent in the second quarter of 2013 (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 1.1 percent (revised).
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 29, 2013.
The increase in real GDP in the second quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, nonresidential fixed investment, private inventory investment, and residential investment that were partly offset by a negative contribution from federal government spending. Imports, which are a subtraction in the calculation of GDP, increased.
The acceleration in real GDP in the second quarter primarily reflected upturns in nonresidential fixed investment and in exports, a 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.
The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 0.3 percent in the second quarter, compared with an increase of 1.2 percent in the first. Excluding food and energy prices, the price index for gross domestic purchases increased 0.8 percent in the second quarter compared with 1.4 percent in the first.
Real personal consumption expenditures increased 1.8 percent in the second quarter, compared with an increase of 2.3 percent in the first. Durable goods increased 6.5 percent, compared with an increase of 5.8 percent. Nondurable goods increased 2.0 percent, compared with an increase of 2.7 percent. Services increased 0.9 percent, compared with an increase of 1.5 percent.
Real nonresidential fixed investment increased 4.6 percent in the second quarter, in contrast to a decrease of 4.6 percent in the first. Nonresidential structures increased 6.8 percent, in contrast to a decrease of 25.7 percent. Equipment increased 4.1 percent, compared with an increase of 1.6 percent. Intellectual property products increased 3.8 percent, compared with an increase of 3.7 percent.
Real residential fixed investment increased 13.4 percent, compared with an increase of 12.5 percent.
Real exports of goods and services increased 5.4 percent in the second quarter, in contrast to a decrease of 1.3 percent in the first. Real imports of goods and services increased 9.5 percent, compared with an increase of 0.6 percent.
Real federal government consumption expenditures and gross investment decreased 1.5 percent in the second quarter, compared with a decrease of 8.4 percent in the first. National defense decreased 0.5 percent, compared with a decrease of 11.2 percent. Nondefense decreased 3.2 percent, compared with a decrease of 3.6 percent.
Real state and local government consumption expenditures and gross investment increased 0.3 percent, in contrast to a decrease of 1.3 percent.
The change in real private inventories added 0.41 percentage point to the second-quarter change in real GDP after adding 0.93 percentage point to the first-quarter change. Private businesses increased inventories $56.7 billion in the second quarter, following increases of $42.2 billion in the first quarter and $7.3 billion in the fourth.
Real final sales of domestic product -- GDP less change in private inventories -- increased 1.3 percent in the second quarter, compared with an increase of 0.2 percent in the first.
Gross domestic purchases
Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 2.4 percent in the second quarter, compared with an increase of 1.4 percent in the first.
Disposition of personal income
Current-dollar personal income increased $140.1 billion (4.1 percent) in the second quarter, in contrast to a decrease of $157.1 billion (4.4 percent) in the first. The upturn in personal income primarily reflected sharp upturns in personal dividend income and in wages and salaries and a sharp deceleration in contributions for government social insurance (a subtraction in the calculation of personal income).
- Personal dividend income increased in the second quarter, in contrast to a large decrease in the first. The first-quarter decline in dividend income primarily reflected the accelerated and special dividends that were paid by many companies in the fourth quarter of 2012.
- Wages and salaries increased in the second quarter, in contrast to a decrease in the first. The first-quarter decline in wages and salaries is based on preliminary quarterly census of employment and wages data from the Bureau of Labor Statistics.
- The sharp deceleration in contributions for government social insurance primarily reflected the first-quarter expiration of the "payroll tax holiday" that increased the social security contribution rate for employees and self-employed workers by 2.0 percentage points.
Personal current taxes increased $36.0 billion in the second quarter, compared with an increase of $74.3 billion in the first.
Disposable personal income increased $104.1 billion (3.4 percent) in the second quarter, in contrast to a decrease of $231.5 billion (7.2 percent) in the first.
Real disposable personal income increased 3.4 percent, in contrast to a decrease of 8.2 percent.
Personal outlays increased $44.7 billion (1.5 percent) in the second quarter, compared with an increase of $98.7 billion (3.4 percent) in the first.
Personal saving -- disposable personal income less personal outlays -- was $553.4 billion in the second quarter, compared with $494.0 billion in the first.
The personal saving rate -- personal saving as a percentage of disposable personal income -- was 4.5 percent in the second quarter, compared with 4.0 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 2.4 percent, or $98.1 billion, in the second quarter to a level of $16,633.4 billion. In the first quarter, current-dollar GDP increased 2.8 percent, or $115.0 billion.
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