United States: Second quarter growth revised upwards
August 27, 2012
In the second quarter, GDP grew at a seasonally-adjusted annualised rate (saar) of 1.7% over the previous quarter, according to revised data released by the Bureau of Economic Analysis (BEA) on 29 August. The print marked an improvement compared to the advance estimate of 1.5% published on 27 July but matched market expectations. The reading represents a slowdown over the 2.0% growth recorded in Q1. The improvement over the advance estimate mainly reflected revisions to private and public consumption as well as exports. Personal consumption expenditures expanded a revised 1.7% (advance estimate: +1.5% quarter-on-quarter saar), while government consumption contracted a revised 0.9% (advance estimate: -1.4% qoq saar). On the other hand, gross fixed investment grew 5.1% (previously reported: +6.1% qoq saar), amid downward revisions to both residential and non-residential fixed investment. On the external side of the economy, export growth was revised up to 6.0% (advance estimate: +5.3% qoq saar), while imports contracted a revised 0.9%, a small improvement over the 1.4% decline previously reported. As a result, the net contribution from the external sector to overall growth improved from the minus 0.31 percentage points initially reported to plus 0.32 percentage points.