According to the first estimate of the US Bureau of Economic Analysis (BEA), real Gross Domestic Product (GDP) expanded by 2.1% on a yearly basis in the second quarter following the 3.1% growth recorded in the first quarter and surpassed the market expectation of 1.8%.
With the initial market reaction, the US Dollar Index, which tracks the USD’s value against a basket of six major currencies, stretched higher and was last up 0.2% on the day at 97.98. Below are some key takeaways from the press release.
“The deceleration in real GDP in the second quarter reflected downturns in inventory investment, exports, and nonresidential fixed investment. These downturns were partly offset by accelerations in PCE and federal government spending.”
“Current-dollar personal income increased $244.2 billion in the second quarter, compared with an increase of $269.8 billion in the first quarter.”
“The price index for gross domestic purchases increased 2.2% in the second quarter, compared with an increase of 0.8% in the first quarter.”
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