Gross Domestic Product (GDP) Estimates 2nd Quarter at 2.46%

The Bureau of Economic Analysis’s third estimate of GDP growth in the second quarter was 2.46 percent q / q, little changed from the 2nd estimate and up from 1.1 percent in the first quarter. The official news release is included below. All major sub components made positive contributions except government expenditures and net exports which both had very small (-.07 percent) negative contributions. The biggest contributors to the growth improvement from Q1 to Q2 were in non residential fixed asset investment which had a 1.1 percent swing from – 0.57 percent to + 0.56 percent and the negative contribution of government expenditures shrank from – 0.82 percent in Q1.

Figure 1 breaks out the individual components and measures their actual growth q / q as a single data stream. This should not to be confused with its contribution to overall GDP. This aspect is important to steel producers and consumers because it confirms the strong growth of residential construction and the Census Bureau’s report of durable goods orders.