EmailAccording to the second estimate of Q2 2011 GDP, economic activity grew slower than originally reported in the advance release. GDP was revised down from 1.3% to 1.0%. The Briefing.com Consensus expected GDP to be revised down to 1.1%.
The revisions were not unexpected. All of the data used to calculate second quarter GDP growth were released over the last month and most of the data came in below BEA projections from the advance release.
Real final sales - which excludes inventory growth - was revised up from 1.1% to 1.2%.
The net export deficit contracted less than expected in the second quarter. Export growth was revised down from 6.0% in the advance release to 3.1% in the second estimate. Import growth was revised up to 1.9% from 1.3% in the advance release.
Gross private domestic investment was revised lower, from 7.1% to 6.4%, as residential investment and inventory growth were overestimated in the advance release. Residential investment was revised from 3.8% in the advance estimate to 3.3% in the second estimate. Inventories increased by only $40.6 billion, down from $49.1 billion in the advance estimate. Personal consumption, nonresidential investment, and government spending were all revised higher and offset a portion of the negative revisions.
Personal spending increased 0.4% in the second quarter, up from 0.1% in the advance estimate. Nonresidential investment was revised higher, from 6.3% to 9.9%, due mostly to stronger growth in structures spending. Government spending fell only 0.9% instead of the -1.1% from the advance estimate.
