The U.S. Bureau of Economic Analysis (BEA) has released its third estimate for the second quarter of 2024, showing a 3.0 percent annual increase in real gross domestic product (GDP). This follows a revised 1.6 percent increase in the first quarter.
The latest GDP figure is based on more comprehensive data than the previous estimate, which also showed a 3.0 percent increase. The update includes upward revisions to private inventory investment and federal government spending, offset by downward revisions to nonresidential fixed investment and exports.
Consumer spending, private inventory investment, and nonresidential fixed investment primarily drove the GDP growth. Imports also increased during this period.
Compared to the first quarter, the acceleration in GDP was due to an upturn in private inventory investment and higher consumer spending, partially offset by a downturn in residential fixed investment.
Current-dollar GDP rose by 5.6 percent annually or $392.6 billion, reaching $29.02 trillion—$9.5 billion higher than previously estimated.
The price index for gross domestic purchases remained at a 2.4 percent increase for the second quarter, consistent with earlier estimates. The personal consumption expenditures (PCE) price index held steady at a 2.5 percent rise, while excluding food and energy prices saw a 2.8 percent increase.
In terms of personal income, current-dollar figures increased by $315.7 billion—a revision upwards by $82.1 billion from prior estimates—primarily driven by compensation increases and personal current transfer receipts.
Disposable personal income grew by $260.4 billion or 5.0 percent for the second quarter, an upward revision of $77.3 billion from previous estimates; real disposable personal income increased by 2.4 percent following an upward revision of 1.4 percentage points.
Personal saving stood at $1.13 trillion in Q2 with a saving rate of 5.2 percent compared to a revised rate of 5.4 percent in Q1.
Real gross domestic income (GDI) saw an increase of 3.4 percent in Q2—a significant upward revision from previous estimates—and corporate profits rose by $132.5 billion after adjusting for inventory valuation and capital consumption adjustments.
Within industry sectors, nondurable goods manufacturing led gains among goods-producing industries while finance and insurance were top contributors within services-producing industries.
This release also includes results from BEA’s annual update covering data from Q1 of 2019 through Q1 of 2024 which resulted in slight revisions across various economic measures including GDP and GDI averages over these periods.
Further details are available on BEA’s website including tables summarizing major revisions and their sources as well as methodology changes.