Newsroom
September 26, 2014
U.S. economy grows a strong 4.6% in 2Q
The U.S. economy grew 4.6 percent in the second quarter, the strongest quarterly growth since 2011, said NAFCU Chief Economist and Director of Research Curt Long.
The data – the third and final estimate for the second quarter – was released Friday by the Bureau of Economic Analysis. "This final estimate for second-quarter gross domestic product is up from the previous estimate of 4.2 percent and reflects stronger growth in business investment than previously estimated," said Long, who details the data in a NAFCU Macro Data Flash report. "This is the strongest quarter for GDP since 2011, but part of that is surely a rebound from the dismal first quarter."
According to the data, residential investment increased 8.8 percent, nonresidential investment increased 9.7 percent, consumer spending increased 2.5 percent and government spending increased by 1.7 percent.
Contributions to growth of real GDP came from gains in personal consumption expenditures (1.8 percentage points), private inventories (1.4 percentage points), nonresidential investment (1.2 percentage points), government spending (0.3 percentage points), and residential investment (0.3 percentage points). Negative contributions to GDP included net exports (-0.3 percentage points).
Core personal consumption expenditures inflation – excluding food and energy (the Fed's key inflation metric) – increased from 1.2 percent in the first quarter to 2 percent in the second quarter. The year-over-year figure now stands at 1.5 percent and has been moving closer to the Fed's 2 percent target.
"The rebound in GDP can be attributed to strong contributions in inventory accumulation, personal consumption and business investment," Long said. "Overall and core PCE inflation both moved closer to the Fed's target inflation rate in the second quarter."
The data – the third and final estimate for the second quarter – was released Friday by the Bureau of Economic Analysis. "This final estimate for second-quarter gross domestic product is up from the previous estimate of 4.2 percent and reflects stronger growth in business investment than previously estimated," said Long, who details the data in a NAFCU Macro Data Flash report. "This is the strongest quarter for GDP since 2011, but part of that is surely a rebound from the dismal first quarter."
According to the data, residential investment increased 8.8 percent, nonresidential investment increased 9.7 percent, consumer spending increased 2.5 percent and government spending increased by 1.7 percent.
Contributions to growth of real GDP came from gains in personal consumption expenditures (1.8 percentage points), private inventories (1.4 percentage points), nonresidential investment (1.2 percentage points), government spending (0.3 percentage points), and residential investment (0.3 percentage points). Negative contributions to GDP included net exports (-0.3 percentage points).
Core personal consumption expenditures inflation – excluding food and energy (the Fed's key inflation metric) – increased from 1.2 percent in the first quarter to 2 percent in the second quarter. The year-over-year figure now stands at 1.5 percent and has been moving closer to the Fed's 2 percent target.
"The rebound in GDP can be attributed to strong contributions in inventory accumulation, personal consumption and business investment," Long said. "Overall and core PCE inflation both moved closer to the Fed's target inflation rate in the second quarter."
Share This
Related Resources
Add to Calendar 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Turning Lemons into Lemonade: Capitalizing in a Post-Banking Crisis Era
Strategy
preferred partner
Allied Solutions
Blog Post
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Add to Calendar 2024-05-02 14:00:00 2024-05-02 14:00:00 Mastering Resilience in Incident Response Plans About the Webinar An Incident Response (IR) plan is crucial for guiding credit unions through major incidents efficiently and effectively. However, many IR plans lack resilience, making them less adaptable to the evolving threat landscape. Join us for our webinar Mastering Resilience in Incident Response Plans where DefenseStorm cyber experts Elizabeth Houser and James Bruhl will delve into the importance of resiliency within cybersecurity IR plans. Don’t miss out on the opportunity to learn how to: Ensure IR plan accessibility so that all team members with assigned roles are prepared for effective incident response. Conduct efficient and regular reviews to ensure roles and responsibilities are current, tools are relevant, and compliance requirements are met. Implement and utilize tabletops to regularly test the effectiveness of your IR plan. Enhance preparedness, efficiency, and confidence among responders. View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Mastering Resilience in Incident Response Plans
preferred partner
DefenseStorm
Webinar
Get daily updates.
Subscribe to NAFCU today.