Feds: Real GDP increases in Q2

Filed under: Daily News |

78492687The U.S. Bureau of Economic Analysis announced Wednesday that the nation’s real gross domestic product increased at an annual rate of 4.2 percent in the second quarter of 2014.

That is a turnaround from a 2.1 percent decrease experienced by the country’s GDP in the year’s first quarter, according a second estimate by the bureau.

The bureau’s second estimate overshoots a preliminary estimate made last month by .1 percent (4 percent).

“With this second estimate for the second quarter, the general picture of economic growth remains the same; the increase in nonresidential fixed investment was larger than previously estimated, while the increase in private inventory investment was smaller than previously estimated,” according to the bureau’s report.

The bureau describes real domestic gross product as “the output of goods and services produced by labor and property located in the United States.”

“The increase in real GDP in the second quarter primarily reflected positive contributions from personal consumption expenditures (PCE), private inventory investment, exports, nonresidential fixed investment, state and local government spending, and residential fixed investment,” according to the report. “Imports, which are a subtraction in the calculation of GDP, increased.”