GDP Grows 1.7% in Final Estimate - Update
The real U.S. GDP (gross domestic product), which represents the output of goods and services produced by labor and property located in the U.S., grew for the
fourth straight quarter in Q2 2010, according to the second quarterly estimate from the
Bureau of Economic Analysis (BEA). However, the third and final 1.7% rate of increase (revised from the second estimate of 1.6%) is down from 2.7% in Q1 2010 and 5.6% in Q4 2009, but still demonstrating a better trend than the three straight quarters of negative growth the GDP underwent from Q4 2008 – Q2 2009.
The increase in real U.S. GDP in Q2 2010 primarily reflected positive contributions from personal consumption expenditures, nonresidential fixed investment, exports, private inventory investment, federal government spending, and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
The deceleration in real GDP in Q2 2010 primarily reflected a sharp acceleration in imports and a sharp deceleration in private inventory investment that were partly offset by an upturn in residential fixed investment, accelerations in nonresidential fixed investment and in federal government spending, and an upturn in state and local government spending.
Final sales of computers added 0.03 percentage point to the Q2 2010 change in real GDP after adding 0.1 percentage point to the first-quarter change. Motor vehicle output subtracted 0.06 percentage point from the second-quarter change in real GDP after adding 0.74 percentage point to the first-quarter change.
The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 0.1% in Q2 2010, the same increase as in the second estimate; this index increased 2.1% in the first quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 0.8% in the second quarter, compared with an increase of 1.6% in the first.
Other notable Q2 2010 GDP figures, including “real” estimates chained to 2000 dollars, follow:
- Real personal consumption expenditures increased 2.2% (revised from a second estimate of 2%) in the second quarter, compared with an increase of 1.9% in the first.
- Real exports of goods and services increased 9.1% (flat from the second estimate) in the second quarter, compared with an increase of 11.4% in the first.
- Real imports of goods and services increased 33.5% (revised from a second estimate of 32.4%) in the second quarter, a significant increase from 11.2% growth in the first.
- Real gross domestic purchases, which are purchases by U.S. residents of goods and services wherever produced, increased 5.1% (revised from a second estimate of 4.9% and flat with the initial estimate) in the second quarter, compared with an increase of 3.9% in the first.
More Goods Enter, Leave US - Update
Figures on imports/exports, freight shipments and port activity suggest more goods both came into and exited U.S. in July 2010 than June 2010 or July 2009. Figures from the
Bureau of Economic Analysis show imports and exports growing both during the month and year, and data from the National Retail Federation (
NRF) suggests an increased amount of freight is coming into U.S. ports compared to July 2010 or July 2009. Supporting the notion that more goods are arriving in the country is analysis from the Bureau of Transportation Services (
BTS) showing a slight increase in freight traveling across the country.
According to the
Bureau of Economic Analysis, on a monthly basis, total exports rose 1.9% from $147.8 billion to $150.6 billion. Total imports climbed 3%, from $194.4 billion to $200.3 billion. The goods deficit increased 14%, from $54.3 billion to $62 billion. Exports of goods rose 2.7% from $104.9 billion to $107.7 billion. Imports of goods fell 2%, from $204.6 billion to $200.3 billion.
Meanwhile, the Freight Transportation Services Index (TSI), which measures the month-to-month changes in freight shipments in ton-miles,
rose 0.4% between June and July 2010, improving on a 0.2% increase the prior month after a decline of 0.3% in May 2010. According to the Bureau of Transportation Services (
BTS), the Freight TSI reached 98.2 in July 2010, compared to 97.9 in June 2010, 97.7 in May 2010, 98.1 in April 2010 and 97.8 in March 2010.
The Global Port Tracker, a monthly analysis of import cargo volume at the nation’s major retail container ports from the National Retail Federation (
NRF) and
Hackett Associates,
increased 5% in July 2010, following a 4% increase in June 2010, 10% increase in May 2010, 7% increases in both April and March 2010, and a 6% decline in February 2010.
