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US Q2 GDP second reading -31.7% vs -32.5% expected

The second reading on Q2 gross domestic product

US GDP second reading Q2 2020
  • The first estimate was -32.9%
  • Q1 was -2.5%
  • Final sales -28.5% vs -29.3% prelim
  • Business investment -26.0% vs -27.0% prelim
  • Consumer spending -34.1% vs -34.6% prelim
  • Exports -63.2% vs -64.1% prelim
  • Imports -54.0% vs -53.4% prelim
  • Inventory change -$286.4B vs -$315.5B prelim
  • GDP deflator -2.3% vs -2.0% expected
  • Full release
Despite the headline, there’s more good news here than bad. The revision higher in inventories means that inventory rebuilding will be less of a tailwind in Q3 and Q4 than anticipated. The drop in inflation also added to real GDP.
“In the second estimate, real GDP decreased 31.7 percent in the second quarter, an upward revision of 1.2 percentage points from the previous estimate issued last month. The revision primarily reflected upward revisions to private inventory investment and PCE,” the BEA said in the release.