US GDP rises 1.7 per cent in second-quarter

Federal consumption expenditures decline.

New Statesman
Photograph: Getty Images.

The US real gross domestic product (GDP), which measures the output of goods and services produced by labour and property located in the country, grew at an annual rate of 1.7 per cent in the second-quarter of 2013, according to the Bureau of Economic Analysis (BEA).

The country’s real GDP grew by 1.1 per cent in the first-quarter of 2013.

The increase in real GDP was primarily due to positive contributions from personal consumption expenditures (PCE), exports, non-residential fixed investment, private inventory investment, and residential investment that were partly offset by a negative contribution from federal government spending.

Imports, which are not included in the calculation of GDP, also grew during the quarter.

During the quarter, real personal consumption expenditures increased by 1.8 per cent, while real non-residential fixed investment, and real exports of goods and services grew by 4.6 per cent and 5.4 per cent respectively, when compared to the first-quarter.

Current-dollar personal income grew by 4.1 per cent to $140.1bn in the second-quarter, compared to a fall of 4.4 per cent ($157.1bn) in the previous quarter.

According to BEA, real federal government consumption expenditures and gross investment declined by 1.5 per cent in the second-quarter, compared to a fall of 8.4 per cent in the first-quarter.