GDP Grows At 3.3% In Q2, Economy Expands At A Faster Clip Than Previously Estimated

The United States’ gross domestic product (GDP) for the second quarter (Q2) came in at an annualized rate of 3.3%, driven by investments and a trade boost.

The Bureau of Economic Analysis revised the inflation-adjusted GDP to 3.3% from a previous estimate of 3%, with net exports contributing to nearly five percentage points, the highest on record, according to a Bloomberg report. The revised GDP estimate for Q2 is higher than a Dow Jones forecast of 3.1%, according to MarketWatch.

The BEA report underscored that within investments, there was a rise in intellectual property products, equipment, and structures, which was partly offset by a downward revision to private inventory investment. Entities reported higher investments in software and research and development segments, the report added.

On the consumer spending side, an increase was observed across goods and services, while government spending declined, primarily due to lower compensation costs.

Another gauge of economic activity, the Gross Domestic Income (GDI), surged 4.8% during the quarter, after a 0.2% uptick in the first quarter (Q1), according to BEA data. While GDP measures the value of goods and services produced in the U.S., GDI measures the income generated and costs incurred in producing and rendering those goods and services.

Meanwhile, U.S. equities edged up in Thursday’s pre-market trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 0.15%, while the Invesco QQQ Trust (QQQ) gained 0.13%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.

Also See: Nvidia’s Q2 Earnings Show Jensen Huang’s Continued Domination, Says Dan Ives: Wedbush MD Sees Tech Stocks Shooting Higher

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