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| Source: US Bureau of Economic Analysis |
US real gross domestic product -- the output of goods and services produced by labour and property located in the United States -- increased at an annual rate of 1.9 percent in the second quarter of 2008 (that is, from the first quarter to the second quarter), according to advance estimates released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.9 percent.
The increase in real GDP in the second quarter primarily reflected positive contributions from exports, personal consumption expenditures (PCE), nonresidential structures, federal government spending, and state and local government spending that were partly offset by negative contributions from private inventory investment, residential fixed investment, and equipment and software. Imports, which are a subtraction in the calculation of GDP, decreased.
The acceleration in real GDP growth in the second quarter primarily reflected a larger decrease in imports, an acceleration in exports, a smaller decrease in residential fixed investment, and an acceleration in PCE that were partly offset by a larger decrease in inventory investment.
Final sales of computers contributed 0.12 percentage point to the second-quarter growth in real GDP after contributing 0.05 percentage point to the first-quarter growth. Motor vehicle output subtracted 1.07 percentage points from the second-quarter growth in real GDP after subtracting 0.41 percentage point from the first-quarter growth.
The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 4.2 percent in the second quarter, compared with an increase of 3.5 percent in the first. Excluding food and energy prices, the price index for gross domestic purchases increased 2.2 percent in the second quarter, the same as in the first.
Real personal consumption expenditures increased 1.5 percent in the second quarter, compared with an increase of 0.9 percent in the first. Durable goods decreased 3.0 percent, compared with a decrease of 4.3 percent. Nondurable goods increased 4.0 percent, in contrast to a decrease of 0.4 percent. Services increased 1.1 percent, compared with an increase of 2.4 percent.
Real nonresidential fixed investment increased 2.3 percent in the second quarter, compared with an increase of 2.4 percent in the first. Nonresidential structures increased 14.4 percent, compared with an increase of 8.6 percent. Equipment and software decreased 3.4 percent, compared with a decrease of 0.6 percent. Real residential fixed investment decreased 15.6 percent, compared with a decrease of 25.1 percent.
Real exports of goods and services increased 9.2 percent in the second quarter, compared with an increase of 5.1 percent in the first. Real imports of goods and services decreased 6.6 percent, compared with a decrease of 0.8 percent.
Real federal government consumption expenditures and gross investment increased 6.7 percent in the second quarter, compared with an increase of 5.8 percent in the first. National defense increased 7.3 percent, the same as in the first. Nondefense increased 5.3 percent, compared with an increase of 2.9 percent. Real state and local government consumption expenditures and gross investment increased 1.6 percent, in contrast to a decrease of 0.3 percent.
The real change in private inventories subtracted 1.92 percentage points from the second-quarter change in real GDP after subtracting 0.02 percentage point from the first-quarter change. Private businesses decreased inventories $62.2 billion in the second quarter, following decreases of $10.2 billion in the first and $8.1 billion in the fourth.
Real final sales of domestic product -- GDP less change in private inventories -- increased 3.9 percent in the second quarter, compared with an increase of 0.9 percent in the first.
Gross domestic purchases
Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- decreased 0.5 percent in the second quarter, in contrast to an increase of 0.1 percent in the first.
Disposition of personal income
Current-dollar personal income increased $214.5 billion (7.4 percent) in the second quarter, compared with an increase of $109.1 billion (3.7 percent) in the first. The acceleration primarily reflected an acceleration in personal current transfer receipts due to the effects of the rebates to individuals who pay no income taxes (or for whom the rebate exceeded the amount of taxes they pay) from the Economic Stimulus Act of 2008.
Personal current taxes decreased $178.9 billion in the second quarter, in contrast to an increase of $20.7 billion in the first. The sharp downturn reflected the rebates to individuals with tax liabilities, which are treated as an offset to taxes.
Disposable personal income increased $393.4 billion (15.9 percent) in the second quarter, compared with an increase of $88.5 billion (3.5 percent) in the first. Real disposable personal income increased 11.3 percent, in contrast to a decrease of 0.1 percent.
Personal outlays increased $143.6 billion (5.6 percent) in the second quarter, compared with an increase of $95.7 billion (3.8 percent) in the first. Personal saving -- disposable personal income less personal outlays -- was $284.9 billion in the second quarter, compared with $35.1 billion in the first. The personal saving rate -- saving as a percentage of disposable personal income -- was 2.6 percent in the second quarter, compared with 0.3 percent in the first. Saving from current income may be near zero or negative when outlays are financed by borrowing (including borrowing financed through credit cards or home equity loans), by selling investments or other assets, or by using savings from previous periods.
