Real gross domestic product increased 2.1 percent in the second quarter of 2019, according to the “advance” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 3.1 percent.
GDP highlights
The second-quarter increase in real GDP reflected increases in consumer spending and government spending, while inventoryinvestment, exports, business investment, and housing investment decreased. Imports, which are a subtraction in the calculation of GDP, increased.
The increase in consumer spending reflected increases in both goods and services that were widespread across major categories. The increase in government spending reflected increases in both federal and state and local government spending.
The decrease in inventory investment reflected decreases in retail trade, manufacturing, and wholesale trade industries. Goods led the decrease in exports.
Personal income and saving
Real disposable personal income—personal income adjusted for taxes and inflation—increased 2.5 percent in the second quarter after increasing 4.4 percent in the first quarter. Personal saving as a percent of disposable personal income was 8.1 percent in the second quarter, compared with 8.5 percent in the first quarter.
Second-quarter prices
Prices of goods and services purchased by U.S. residents increased 2.2 percent in the second quarter of 2019, after increasing 0.8 percent in the first quarter.
Food prices increased 0.7 percent in the second quarter, while energy prices increased 18.8 percent.
Excluding food and energy, prices increased 1.8 percent in the second quarter, compared with an increase of 1.2 percent in the first quarter.
Annual update
BEA released its annual update of the national income and product accounts that incorporated newly available and revised source data from first quarter of 2014 through the first quarter of 2019. For more details, see “Information on Updates to the National Income and Product Accounts.”
For more information, read the full report.