In Q2, the U.S. economy grew twice as fast as it did in Q1, which was supported by consumer spending and private inventory investment, according to the National Association of Home Builders (NAHB).
Consumer spending rose at its annual rate of 2.3% in Q2, reflecting an increase in both services and goods. Expenditures for services increased 2.2% at an annual rate, with goods spending increased 2.5%.
According to the estimate released by the Bureau of Economic Analysis, real gross domestic product (GDP) rose 2.8%, which is the annual pace for Q2, but faster than the 1.4% gained in Q1.
Nonresidential fixed investment increased 5.2% in Q2. Increases in equipment and intellectual property products were partly offset by a decrease in structures. Meanwhile, residential fixed investment (RFI) decreased 1.4% in the Q2 and dragged down the contribution to the GDP by 0.05%. Within residential fixed investment, single-family structures declined 5.6% at an annual rate, multifamily structures decreased 3.2% and other structures rose 5.9%.
The U.S. trade deficit increased in Q2 as imports increased more than exports. A wider trade deficit shaved 0.72% off the GDP. Imports, which are a subtraction in the calculation of GDP, increased 6.9%, while exports rose 2.0%.
