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Real gross domestic product (GDP) increased at an annual rate of 4.2 percent in the second quarter of
2018 (table 1), according to the “second” estimate released by the Bureau of Economic Analysis. In the
first quarter, real GDP increased 2.2 percent.

The GDP estimate released today is based on more complete source data than were available for the
“advance” estimate issued last month. In the advance estimate, the increase in real GDP was 4.1
percent. With this second estimate for the second quarter, the general picture of economic growth
remains the same; the revision primarily reflected upward revisions to nonresidential fixed investment
and private inventory investment that were partly offset by a downward revision to personal
consumption expenditures (PCE). Imports which are a subtraction in the calculation of GDP, were
revised down.

 

Real gross domestic income (GDI) increased 1.8 percent in the second quarter, compared with an
increase of 3.9 percent in the first quarter. The average of real GDP and real GDI, a supplemental
measure of U.S. economic activity that equally weights GDP and GDI, increased 3.0 percent in the
second quarter, compared with an increase of 3.1 percent in the first quarter.

 

The increase in real GDP in the second quarter reflected positive contributions from PCE, nonresidential
fixed investment, exports, federal government spending, and state and local government spending that
were partly offset by negative contributions from private inventory investment and residential fixed
investment. Imports decreased (table 2).
The acceleration in real GDP growth in the second quarter reflected accelerations in PCE, exports,
federal government spending, and state and local government spending, as well as a smaller decrease in
residential fixed investment. These movements were partly offset by a downturn in private inventory
investment and a deceleration in nonresidential fixed investment. Imports decreased after increasing in
the first quarter.
Current-dollar GDP increased 7.6 percent, or $370.9 billion, in the second quarter to a level of $20.41
trillion. In the first quarter, current-dollar GDP increased 4.3 percent, or $209.2 billion

The price index for gross domestic purchases increased 2.3 percent in the second quarter, compared
with an increase of 2.5 percent in the first quarter. The PCE price index increased 1.9 percent,
compared with an increase of 2.5 percent. Excluding food and energy prices, the PCE price index
increased 2.0 percent, compared with an increase of 2.2 percent.

Updates to GDP

The percent change in real GDP was revised up 0.1 percentage point from the advance estimate,
reflecting upward revisions to nonresidential fixed investment, private inventory investment, federal
government spending, and state and local government spending that were partly offset by downward
revisions to PCE, residential fixed investment, and exports. Imports were revised down.

 

Profits from current production (corporate profits with inventory valuation and capital consumption
adjustments) increased $72.4 billion in the second quarter, compared with an increase of $26.7 billion in
the first quarter.
Profits of domestic financial corporations increased $16.8 billion in the second quarter, in contrast to a
decrease of $9.3 billion in the first quarter. Profits of domestic nonfinancial corporations increased
$63.6 billion, compared with an increase of $32.3 billion. Rest-of-the-world profits decreased $8.0
billion, in contrast to an increase of $3.7 billion. In the second quarter, receipts decreased $6.0 billion,
and payments increased $2.0 billion.