The US economy grew 2.0 per cent (seasonally adjusted annualized rate, chained 2012 dollars) in Q2 2019, according to the third estimate by the US BEA. This was unrevised from the second estimate. Downward revisions to personal consumption and non-residential fixed investment were offset by upward revisions to state and local government spending and exports and a downward revision to imports. Growth was slower than the 3.1 per cent pace in the previous quarter due to downturns in inventories, exports and non-residential fixed investment offsetting accelerations in personal consumption and federal government spending. Since Q2 2018, US real GDP has grown by 2.3 per cent.

The growth in Q2 2019 reflects positive contributions from personal consumption and government spending while there were declines in exports, non-residential fixed investment, and residential investment and a smaller inventory accumulation.

Personal consumption expenditure growth accelerated in Q2 with a increase of 4.6 per cent (annualized rate) compared to averaging 2.0 per cent over the previous three quarters. Gains in both durable and nondurable goods led to growth of 8.6 per cent among goods expenditures while services were up 2.8 per cent. Non-residential investment declined 1.0 per cent after 12 quarters of growth with a decline in structures. Residential investment was down for the sixth consecutive quarter. Exports declined 5.7 per cent with declines in both goods (-5.9 per cent) and services (-5.1 per cent). Federal nondefense expenditures (+16.1 per cent) were up in Q2 after a government shutdown in the previous quarter. Imports were virtually unchanged compared to the previous quarter.

US nominal GDP growth (including the impacts of rising prices) was 4.7 per cent in Q2, compared to 3.9 per cent growth reported in the first quarter.  The personal consumption expenditure price index increased 2.4 per cent, following a 0.4 per cent increase last quarter.

Source: US Bureau of Economic Analysis