GDP Grew 1.5% During Q2 in Advance Estimate

Gross domestic product rose at an annual rate of 1.5% in the second quarter according to the advance estimate, in comparison to an increase of 2.1% in the first quarter (Bureau of Economic Analysis).

What’s going on: The slowdown in growth reflects a decrease in government spending, alongside less investment and fewer exports, offset by a rise in consumer spending.

• Equipment and intellectual property products investments both helped drive the growth in the first half of the year.

Personal consumption: “The price index for gross domestic purchases increased 5.7 percent in the second quarter, compared with an increase of 3.6 percent in the first quarter. The personal consumption expenditures (PCE) price index increased 5.1 percent, compared with an increase of 4.6 percent, and the PCE price index excluding food and energy increased 3.4 percent, compared with an increase of 4.4 percent.”