Statement on the First Estimate of GDP for the Second Quarter of 2016

WASHINGTON, DC – Jason Furman, Chairman of the Council of Economic Advisers, issued the following statement today on the first estimate of GDP for the second quarter of 2016. 

Summary: Real GDP grew 1.2 percent at an annual rate in the second quarter, with strong consumer spending growth offset in part by a decrease in inventory investment.

The economy grew 1.2 percent at an annual rate in the second quarter of 2016, due in part to a large decline in inventory investment (one of the most volatile components of GDP), along with declines in business investment, residential investment, and government spending. However, consumer spending grew strongly at 4.2 percent, and, in contrast to the pattern in recent years, net exports also added to GDP. Overall, the most stable and persistent components of output—consumption and fixed investment—rose a solid 2.7 percent in the second quarter. Today’s report underscores that there is more work to do, and the President will continue to take steps to strengthen economic growth and boost living standards, including promoting greater competition across the economy; supporting innovation; and calling on Congress to increase investments in infrastructure and to pass the high-standards Trans-Pacific Partnership. 

Click here to read the complete statement.

Source: The White House, the Office of the Press Secretary