by Calculated Risk on 7/28/2022 08:38:00 AM
The decrease in real GDP reflected decreases in private inventory investment, residential fixed investment, federal government spending, state and local government spending, and nonresidential fixed investment that were partly offset by increases in exports and personal consumption expenditures (PCE). Imports, which are a subtraction in the calculation of GDP, increased.
PCE increased at a 1.0% rate, and residential investment decreased at a 14.0% rate. Change in private inventories was a huge drag in Q2, subtracting 2.01 percentage points. The advance Q2 GDP report, with 0.9% annualized decline, was below expectations.
I’ll have more later …