U.S. economy increased at 1% in the second quarter after expanding in the first quarter 0.4%. The price index of gross domestic purchases increased 3.3% in the quarter compared to 4% in the first. Change in private inventories added 0.23% compared to 0.32% in the first.
The following is an unedited transcript released by Bureau of Economic Analysis, U.S. Department of Commerce, Washington, DC and available at:
National Income and Product Accounts
Gross Domestic Product: 2nd quarter 2011 (second estimate)
Corporate Profits, 2nd quarter 2011 (preliminary estimate)
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 1.0 percent in the second quarter of 2011, (that is, from the first quarter to the second quarter), according to the ""second"" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.4 percent.
The GDP estimates released today are based on more complete source data than were available for the ""advance"" estimate issued last month. In the advance estimate, the increase in real GDP was 1.3 percent (see ""Revisions"" on page 3).
The increase in real GDP in the second quarter primarily reflected positive contributions from nonresidential fixed investment, exports, personal consumption expenditures (PCE), and federal government spending that were partly offset by negative contributions from state and local government spending and private inventory investment. 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 decelerations in PCE and in exports and a downturn in private inventory investment.
FOOTNOTE.-- Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise specified. Quarter-to-quarter dollar changes are differences between these published estimates. Percent changes are calculated from unrounded data and are annualized. “Real” estimates are in chained (2005) dollars. Price indexes are chain-type measures.
This news release is available on BEA’s Web site along with the Technical Note and Highlights related to this release.
Final sales of computers added 0.11 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 0.15 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 3.3 percent in the second quarter, 0.1 percentage point more than in the advance estimate; this index increased 4.0 percent in the first quarter. 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 0.4 percent in the second quarter, compared with an increase of 2.1 percent in the first. Real nonresidential fixed investment increased 9.9 percent, compared with an increase of 2.1 percent. Nonresidential structures increased 15.7 percent, in contrast to a decrease of 14.3 percent. Equipment and software increased 7.9 percent, compared with an increase of 8.7 percent. Real residential fixed investment increased 3.4 percent, in contrast to a decrease of 2.4 percent.
Real exports of goods and services increased 3.1 percent in the second quarter, compared with an increase of 7.9 percent in the first. Real imports of goods and services increased 1.9 percent, compared with an increase of 8.3 percent.
Real federal government consumption expenditures and gross investment increased 2.0 percent in the second quarter, in contrast to a decrease of 9.4 percent in the first. National defense increased 7.1 percent, in contrast to a decrease of 12.6 percent. Nondefense decreased 7.5 percent, compared with a decrease of 2.7 percent. Real state and local government consumption expenditures and gross investment decreased 2.8 percent, compared with a decrease of 3.4 percent.
The change in real private inventories subtracted 0.23 percentage point from the second-quarter change in real GDP, after adding 0.32 percentage point to the first-quarter change. Private businesses increased inventories $40.6 billion in the second quarter, following increases of $49.1 billion in the first quarter and of $38.3 billion in the fourth.
Real final sales of domestic product -- GDP less change in private inventories -- increased 1.2 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 0.9 percent in the second quarter, compared with an increase of 0.7 percent in the first.
Gross national product
Real gross national product -- the goods and services produced by the labor and property supplied by U.S. residents -- increased 1.7 percent in the second quarter, compared with an increase of 1.5 percent in the first. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which increased $24.3 billion in the second quarter after increasing $36.6 billion in the first; in the second quarter, receipts increased $29.0 billion, and payments increased $4.7 billion.
