US real GDP grows at annual rate of 2.1% in Q2 2023: BEA estimate

In the advance estimate, the increase in real GDP was 2.4 per cent. Imports, which are a subtraction in the calculation of GDP, decreased. Current-dollar GDP increased 4.1 per cent at an annual rate, or $268.6 billion, in Q2 to a level of $26.80 trillion, a downward revision of $36.3 billion from the previous estimate, BEA said in a press release.

The price index for gross domestic purchases increased 1.7 per cent in Q2, a downward revision of 0.2 percentage point from the previous estimate. The personal consumption expenditures (PCE) price index increased 2.5 per cent, a downward revision of 0.1 percentage point. Excluding food and energy prices, the PCE price index increased 3.7 per cent, a downward revision of 0.1 percentage point.

Real gross domestic income (GDI) increased 0.5 per cent in Q2, in contrast to a decrease of 1.8 per cent in Q1. The average of real GDP and real GDI, a supplemental measure of US economic activity that equally weights GDP and GDI, increased 1.3 per cent in Q2, compared with an increase of 0.1 per cent in Q1.

Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) decreased $10.6 billion in Q2, compared with a decrease of $121.5 billion in Q1.

Profits of domestic financial corporations decreased $47.8 billion in Q2, compared with a decrease of $9.4 billion in Q1. Profits of domestic non-financial corporations increased $17.1 billion in Q2, in contrast to a decrease of $102.9 billion in Q1. Rest-of-the-world profits increased $20.2 billion in Q2, in contrast to a decrease of $9.2 billion in Q1. In Q2, receipts increased $18.2 billion and payments decreased $2.0 billion.

Fibre2Fashion News Desk (NB)