When the first GDP report for the second quarter was released, there was an expected gain of about 3.1%. The revision came in at 4.2%, just above the Bloomberg estimate of 4.0%, while Dow Jones had pegged the estimate at 3.8%.
Even with this slight increase in the GDP estimate, the big economic picture remains basically unchanged. It would appear that most economists are not second-guessing the number going forward and that the future revision will remain in this range.
Corporate spending and profits had a big effect on this revision. Corporate spending increased $154.9 billion in the second quarter compared to a decrease of $201.7 billion in the first.
Real nonresidential fixed investment increased 8.4% in the second quarter, which leaped over the first quarter’s 1.6% posting.
Exports of goods and services increased 10.1%, compared to the decrease of 9.2% in the first quarter.
The GDP price index rose 2.1%, which is just above the estimate of 2.0%. The GDP price index remains relatively unchanged from the previous estimate.
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