U.S. GDP Grows at Annual Rate of 2.8 Percent in Q2

The latest data exceed expectations by economists previously surveyed by Dow Jones, who had been looking for growth of 2.1 percent.

This marks an acceleration from the first quarter in 2024, when GDP grew by 1.4 percent, according to the department's Bureau of Economic Analysis (BEA).

The increase in real GDP primarily reflected increases in consumer spending, private inventory investment, and non-residential fixed investment, the report noted. Imports, which are a subtraction in the calculation of GDP, also increased.

Compared to the first quarter, the acceleration in real GDP in the second quarter primarily reflected an upturn in private inventory investment and an acceleration in consumer spending, the report said. These movements were partly offset by a downturn in residential fixed investment.

Disposable personal income, however, saw slower growth in the quarter, indicating potential weakness in consumption going forward.

Disposable personal income increased 3.6 percent in the second quarter, compared with an increase of 4.8 percent in the first quarter. Real disposable personal income, which accounts for taxes and adjusts for inflation, increased 1.0 percent, compared with an increase of 1.3 percent in the previous period.

The newly released GDP estimate for the second quarter, in what was called an "advance" estimate, is based on source data that are incomplete or subject to further revision by the BEA.

The "second" estimate for the second quarter, based on more complete source data, will be released on Aug. 29.

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