Real gross domestic product (GDP) increased at an annualised rate of 1.0% in the second
quarter of 2011 after increasing 0.4% in the first quarter, according to
estimates released today by the Bureau of Economic Analysis. The second quarter
growth rate was revised down a 0.3 percentage point from the advance estimate released in
The increase in real GDP in the second quarter primarily reflected positive contributions from nonresidential fixed investment, exports, personal consumption expenditures (PCE), and federal government spending that were partly offset by negative contributions from state and local government
spending and private inventory investment. Imports, which are a subtraction in the calculation of GDP, increased.
The acceleration in real GDP in the second quarter primarily reflected a deceleration in imports, an upturn in federal government spending, and an acceleration in nonresidential fixed investment that
were partly offset by decelerations in PCE and in exports and a downturn in private inventory investment.
Revisions to GDP: The 0.3 percentage point downward revision
to real GDP growth in the second quarter mainly reflected downward revisions to
inventory investment and to exports that were partly offset by upward revisions
to business fixed investment and to consumer spending.
Second-quarter highlights: The following contributed to the
1.0% growth in real GDP in the second quarter:
Business fixed investment
increased; equipment and software as well as structures increased.
Exports of both goods and
Consumer spending increased,
reflecting an increase in household services.
Federal government spending
rose; an increase in defense spending more than offset a decline in
Offsetting these contributions to real GDP growth were a
decline in state and local government spending, a rise in imports, and a
decline in inventory investment.
Corporate profits: Second-quarter corporate profits rose
3.0% at a quarterly rate following a 1.0% rise in the first quarter. Second
quarter nonfinancial profits rose 8.5% and financial profits fell 11.5% from the
first quarter. Profits from the rest of the world increased 6.6% in the second