Search ForexCrunch

“Real gross domestic product (GDP) increased at an annual rate of 4.2 percent in the second quarter of 2018, according to the “third” estimate released by the Bureau of Economic Analysis,” the BEA reported on Thursday. This reading came in line with the market consensus.

Key takeaways from the press release

  • In the second estimate, the increase in real GDP was also 4.2 percent.  
  • With this third estimate for the second quarter, the general picture of economic growth remains the same; a downward revision to private inventory investment was offset by small upward revisions to most other GDP components.  
  • Imports which are a subtraction in the calculation of GDP, were revised down slightly.
  • Current-dollar GDP increased 7.6 percent, or $370.9 billion, in the second quarter to a level of $20.41 trillion.  
  • The PCE price index increased 2.0 percent, compared with an increase of 2.5 percent.
  • Excluding food and energy prices, the PCE price index increased 2.1 percent, compared with an increase of 2.2 percent.