The second-quarter decrease in real GDP reflected decreases in inventory investment, housing investment, federal government spending, and state and local government spending. Exports, consumer spending and imports, which are a subtraction in the calculation of GDP, increased, the Bureau of Economic Analysis, US said in a media release.

The decrease in inventory investment primarily reflected a decrease in retail trade (led by ‘other’ general merchandise stores) and wholesale trade. The increase in imports reflected an increase in services (led by travel), while the increase in exports reflected increases in both goods (led by industrial supplies and materials) and services (led by travel).

Real disposable personal income (DPI)—personal income adjusted for taxes and inflation—decreased 0.6 per cent (revised) in the second quarter after decreasing 7.8 per cent in the first quarter.

Corporate profits increased 6.1 per cent at a quarterly rate in the second quarter after decreasing 2.2 per cent in the first quarter. Profits of domestic nonfinancial corporations increased 9.4 per cent after decreasing 0.3 per cent in Q1, while profits of domestic financial corporations decreased 4.8 per cent after decreasing 9.3 per cent in Q1. Profits from the rest of the world increased 4.9 per cent after decreasing 1.5 per cent. Corporate profits increased 8.1 per cent in the second quarter from one year ago.

Fibre2Fashion News Desk (KD)