Real gross domestic product increased at an annual rate of 2.6 percent in the second quarter of 2017, according to the “advance” estimate released by the U.S. Commerce Department’s Bureau of Economic Analysis. In the first quarter, real GDP increased 1.2 percent (revised).
The Bureau emphasized that the second-quarter advance estimate is based on source data that are incomplete or subject to further revision by the source agency. The “second” estimate for the second quarter, based on more complete data was released in late August 30, after For Distributors Only went to press.
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, increased (table 2).
The price index for gross domestic purchases increased 0.8 percent in the second quarter, compared with an increase of 2.6 percent in the first quarter (revised). The PCE price index increased 0.3 percent, compared with an increase of 2.2 percent. Excluding food and energy prices, the PCE price index increased 0.9 percent, compared with an increase of 1.8 percent.
Current-dollar personal income increased $118.9 billion in the second quarter, compared with an increase of $217.6 billion in the first quarter (revised). The deceleration in personal income primarily reflected decelerations in wages and salaries, in government social benefits, in nonfarm proprietors’ income, and in rental income, and downturns in personal interest income and in farm proprietors’ income. These movements were offset by an upturn in personal dividend income.
Disposable personal income increased $122.1 billion, or 3.5 percent, in the second quarter, compared with an increase of $176.3 billion, or 5.1 percent, in the first quarter (revised). Real disposable personal income increased 3.2 percent, compared with an increase of 2.8 percent.