GDP gains revised lower for second quarter

Sept. 27, 2012 at 12:31 PM

WASHINGTON, Sept. 27 (UPI) -- The U.S. Commerce Department Wednesday revised its estimate of U.S. economic growth in the second quarter with a sharp reduction from the previous estimate.

A month after an initial estimate of 1.5 percent growth in the gross domestic product, the department posted a revised gain of 1.7 percent. On Thursday, the department reversed itself and posted a final, third estimate pegging growth at 1.3 percent for April through June.

The final figure is precisely what economists estimated at the end of July at the time of the first published GDP report.

Economists are back to comparing the second quarter GDP growth to the first quarter, when the economy grew 2 percent over the final quarter of 2011.

The Commerce Department said production of motor vehicles added 0.2 percentage points to the GDP in the second quarter following a 0.72 percentage point contribution in the first quarter. After adding 0.2 percentage points to the first quarter's GDP, computer sales subtracted 0.1 percentage points from the final figure in the second quarter, the department said.

Consumer spending adjusted for inflation rose 1.5 percent in the second quarter after rising 2.4 percent in the first.

Real exports of goods and services rose 5.3 percent in the second quarter, after a gain of 4.4 percent in the previous quarter. Real imports, which is imports adjusted for inflation, increased 2.8 percent after rising 3.1 percent in the first quarter.

The department said corporate profits rose by $21.8 billion in the second quarter after dropping $53 billion in the first. Taxes on corporate income decreased $10.3 billion in the second quarter after rising $83.2 billion in the first.

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Latest Headlines
Top Stories
Hess completes Bakken joint venture
Whole Foods apologizes for overcharging customers
BP settles with U.S. coastal states for $18.7 billion
Brazil orders search-and-rescue aircraft
Momentum builds behind giant Norwegian oil field