US Q2 GDP data matches estimates

The Commerce Department released its "advance" estimate for the U.S. gross domestic product (GDP) for the second quarter, which revealed the U.S. economic growth met expectations in the period. According to the estimate, the U.S. real GDP increased at an annual rate of 2.6 percent y-o-y last quarter, after rising by a downwardly revised 1.2 percent in the first quarter (originally 1.4 percent), and matching economists' forecast.

According to the report, the increase in real GDP in the second quarter reflected positive contributions from personal consumption expenditures (PCE), nonresidential fixed investment, exports, and federal government spending that were partly offset by negative contributions from private residential fixed investment, private inventory investment, and state and local government spending. Imports, which are a subtraction in the calculation of GDP, also increased.

The PCE price index rose increased 0.3 percent q-o-q in the second quarter, compared with an increase of 2.2 percent in the previous quarter (revised from initially reported 2.4 percent). Excluding food and energy prices, the PCE price index increased 0.9 percent q-o-q, compared with an increase of 1.8 percent q-o-q (revised from initially reported 2 percent). Economists had expected PCE price index to increase 1.2 percent q-o-q in the second quarter.