The U.S. Bureau of Economic Analysis just released their third and final estimate of second-quarter growth. The Gross Domestic Product (GDP) of Q2 of this year was 4.2%, the largest increase since Q3 2014. While this estimate remains unchanged from the previous one, this is still good news as it shows more certainty in strong economic growth.
The acceleration in real GDP growth in the second quarter reflected accelerations in personal consumption expenditures (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 in the second quarter after increasing in the first, likely due to fears of new tariffs.
Although the end of the third quarter is already upon us, predictions still vary greatly and we won’t see any reliable data until later in the month.