Real gross domestic product increased at an annual rate of 1.1 percent in the second quarter of 2016
(table 1), according to the "second" estimate released by the Bureau of Economic Analysis. In the first
quarter, real GDP increased 0.8 percent.
The GDP estimate released today is 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 1.2
percent. With this second estimate for the second quarter, the general picture of economic growth
remains the same; revisions to the components of GDP are small (see "Updates to GDP" on page 2).
Real gross domestic income (GDI) increased 0.2 percent in the second quarter, compared with an
increase of 0.8 percent in the first (revised). The average of real GDP and real GDI, a supplemental
measure of U.S. economic activity that equally weights GDP and GDI, increased 0.6 percent in the
second quarter, compared with an increase of 0.8 percent in the first (table 1).
The increase in real GDP in the second quarter primarily reflected positive contributions from personal
consumption expenditures (PCE) and exports that were partly offset by negative contributions from
private inventory investment, residential fixed investment, state and local government spending and
nonresidential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased
(table 2).
The acceleration in real GDP in the second quarter primarily reflected an acceleration in PCE, a smaller
decrease in nonresidential fixed investment, an upturn in exports, and a smaller decrease in federal
government spending. These were partly offset by a larger decrease in private inventory investment and
downturns in state and local government spending, in residential fixed investment, and in imports.
Current-dollar GDP increased 3.4 percent, or $154.9 billion, in the second quarter to a level of $18,436.5
billion (table 1 and table 3). In the first quarter, current dollar GDP increased 1.3 percent, or $58.9
billion.
The price index for gross domestic purchases increased 2.1 percent in the second quarter, compared
with an increase of 0.2 percent in the first (table 4). The PCE price index increased 2.0 percent,
compared with an increase of 0.3 percent. Excluding food and energy prices, the PCE price index
increased 1.8 percent, compared with an increase of 2.1 percent (appendix table A).
Updates to GDP
The downward revision to the percent change in real GDP primarily reflected downward revisions to
state and local government spending and to private inventory investment and an upward revision to
imports. These were partly offset by upward revisions to nonresidential fixed investment and to PCE. For
more information, see the Technical Note. For information on revisions, see
"Updates to GDP" on the additional information page at the back of this release.
Advance Estimate Second Estimate
(Percent change from preceding quarter)
Real GDP 1.2 1.1
Current-dollar GDP 3.5 3.4
Real GDI --- 0.2
Average of Real GDP and Real GDI --- 0.6
Gross domestic purchases price index 2.0 2.1
PCE price index 1.9 2.0
For the first quarter of 2016, the percent change in real GDI was revised down 0.1 percentage point
from 0.9 percent to 0.8 percent based on newly available first-quarter tabulations from the BLS
quarterly census of employment and wages.
Corporate Profits (table 12)
Profits from current production (corporate profits with inventory valuation adjustment and capital
consumption adjustment [CCAdj]) decreased $24.1 billion in the second quarter, in contrast to an
increase of $66.0 billion in the first.
Profits of domestic financial corporations increased $7.2 billion in the second quarter, compared with
an increase of $8.1 billion in the first. Profits of domestic nonfinancial corporations decreased $58.2
billion, in contrast to an increase of $84.8 billion. The rest-of-the-world component of profits increased
$26.9 billion, in contrast to a decrease of $26.9 billion. This measure is calculated as the difference
between receipts from the rest of the world and payments to the rest of the world. In the second
quarter, receipts increased $19.8 billion, and payments decreased $7.1 billion.
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Next release: September 29, 2016 at 8:30 A.M. EDT
Gross Domestic Product: Second Quarter 2016 (Third Estimate)
Corporate Profits: Second Quarter 2016 (Revised Estimate)
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