United States: Second quarter growth revised downwards
September 27, 2012
In the second quarter, GDP grew at a seasonally-adjusted annualised rate (saar) of 1.3% over the previous quarter, according to final data released by the Bureau of Economic Analysis (BEA) on 27 September. The print marked a deterioration compared to the second estimate of 1.7% published on 29 August and undershot market expectations, which had anticipated growth would be unrevised at 1.7%. The reading represents the slowest growth rate observed since the third quarter of 2011. The deterioration over the second estimate mainly reflected revisions to private consumption as well as fixed investment. Personal consumption expenditures expanded a revised 1.5% (second estimate: +1.7% quarter-on-quarter saar), while gross fixed investment grew a revised 4.5% (second estimate: +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 down to 5.2% (second estimate: +6.0% qoq saar), while imports grew a revised 2.8%, a small deterioration over the 2.9% expansion previously reported. As a result, the net contribution from the external sector to overall growth fell from the 0.32 percentage points initially reported to 0.23 percentage points.