The update primarily reflects upward revisions to private inventory investment and federal government spending that were offset by downward revisions to non-residential fixed investment and exports. Imports, which are a subtraction in the calculation of GDP, were revised up, a BEA release said.

Current-dollar GDP increased by 5.6 per cent, or $392.6 billion, at an annual rate in Q2 2024 to a level of $29.02 trillion—a $9.5 billion larger increase than the previous estimate.

The price index for gross domestic purchases increased by 2.4 per cent in Q2, the same as the previous estimate.

The personal consumption expenditures (PCE) price index increased by 2.5 per cent, the same as the previous estimate. Excluding food and energy prices, the PCE price index increased by 2.8 per cent, also the same as the previous estimate.

Current-dollar personal income increased by $315.7 billion in Q2 2024—an upward revision of $82.1 billion from the previous estimate.

Disposable personal income increased $260.4 billion, or 5 per cent, in Q2—an upward revision of $77.3 billion from the previous estimate. Real disposable personal income increased by 2.4 per cent—an upward revision of 1.4 percentage points (pps).

Personal saving was $1.13 trillion in Q2 2024—an upward revision of $74.3 billion from the previous estimate. The personal saving rate—personal saving as a percentage of disposable personal income—was 5.2 per cent in Q2 compared with 5.4 per cent (revised) in Q1.

Real gross domestic income (GDI) increased by 3.4 per cent in Q2 2024—an upward revision of 2.1 pps from the previous estimate.

The average of real GDP and real GDI, a supplemental measure of US economic activity that equally weights GDP and GDI, increased by 3.2 per cent in Q2—an upward revision of 1.1 pps from the previous estimate.

Profits from current production increased by $132.5 billion in Q2, an upward revision of $74.9 billion from the previous estimate.

Fibre2Fashion News Desk (DS)