The U.S. Department of Commerce said on the 30th (local time) that the preliminary U.S. GDP growth rate for the second quarter was 2.1% per year.
It was revised down 0.3 percentage points from the breaking news (2.4%) released last month, lower than the expert forecast (2.4%) compiled by the Wall Street Journal (WSJ).
The Commerce Department explained that the downward revision of non-residential fixed investment, which represents private inventory investment and corporate investment activities, was reflected in the provisional decrease.
The provisional value is calculated by reflecting the economic activity indicators that were omitted when estimating the breaking news value.
Although the preliminary estimate for the second quarter was revised downward, it seems to be maintaining growth, still exceeding the potential growth rate of the U.S. economy, which is estimated to be in the late 1% range.
Compared to the growth rate (2.0%) in the first quarter, it also showed slightly higher growth.
The U.S. releases GDP statistics by converting the growth rate from the previous quarter into the annual growth rate.
The median U.S. potential growth forecast for the U.S. Federal Reserve (Fed) is 1.8%.
The Commerce Department explained that the increase in consumer spending, fixed investment for non-residential use, and federal and local government spending contributed to the growth.
On the other hand, sluggish exports, residential fixed investment, and private inventory investment offset this.
The U.S. growth rate is announced three times: breaking news, provisional, and definitive.
This day’s announcement is provisional and can be revised in the future
