US annualised GDP (gross domestic product) rose increased 4.2% in the second quarter of 2014, according to the “second” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP decreased 2.1%. The second-quarter growth rate was revised up 0.2%age point from the “advance” estimate released in July.
Second-quarter highlights: The upturn in real GDP growth was primarily driven by the following:
In addition, business investment picked up, and state and local government spending increased after decreasing in the first quarter.
In contrast to these contributions, imports (a subtraction in the calculation of GDP) were higher in the second quarter than in the first quarter.
The 0.2%age point revision to second-quarter GDP growth primarily reflected an
upward revision to business investment and a downward revision to imports. These
revisions were partly offset by a downward revision to inventory investment.
Over the last 12 months, corporate profits fell 0.3%.
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