The US economy grew below expectations in the second quarter

The US Department of Commerce published its second estimates of Gross Domestic Product (GDP) data for the April-June period.

Consequently, the US GDP rose 2.1 percent annually in the second quarter of this year.

Although there was a downward revision in the growth data in that period, the market expectation was that the economy would grow 2.4 percent in the second quarter.

The first data on the country’s GDP published in July showed that the economy grew by 2.4 percent in the second quarter of the year.

GROWTH IN THE FIRST QUARTER

The country’s economy showed 2 percent growth in the first quarter of 2023. A

The growth of the US economy in the second quarter of the year was driven by increases in consumer spending, nonresidential fixed investment, state and local government spending, and federal government spending, as well as a decline in imports.

There was a decrease in exports, residential fixed investment and private stock investment.

The downward revision of private stock market investment and non-residential fixed investment was decisive in the revision of GDP in the second quarter.

In the second quarter of the year, the increase in the price index for personal consumption expenditures was recorded at 2.5 percent. The data, which rose below expectations, was expected to rise by 2.6 in this period. The personal consumption expenditures price index rose 4.1 percent in the first quarter of the year.

The increase in the basic personal consumption expenditures price index, which excludes food and energy expenditures, was revised from 3.8 percent to 3.7 percent. Market expectations were that the basic personal consumption expenditures price index would rise 3.8 percent in this period. The basic price index for personal consumption expenditures increased by 4.9 percent in the first quarter of the year. (AA)