News & Insights

Real GDP grew at an annual rate of 3.8% in the second quarter, according to the third and last estimate released by the Bureau of Economic Analysis. This represents a 0.5 percentage point increase from the second estimate of 3.3% and 0.8 percentage point jump from the first estimate of 3.0%.

• Meanwhile, the revised estimate for the first quarter showed real GDP decreased 0.6%, down 0.1 percentage point from the previous estimate of -0.5%.

What’s behind it: The upward revision of GDP in Q2 primarily reflects higher consumer spending.

• “Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, increased 2.9% in the second quarter, revised up 1.0 percentage point from the previous estimate,” the BEA reported.

What it means for manufacturers: “The upward revisions to consumer spending and business investment in the second quarter are positive signs, given that manufacturers’ optimism and every forecasted metric in the latest NAM Manufacturers’ Outlook Survey increased notably in the third quarter,” said NAM Chief Economist Victoria Bloom.

• “Although investment in equipment picked up, spending on structures, which represent factories and infrastructure, contracted 7.5% in the second quarter amid an environment of heightened uncertainty.”