WASHINGTON, DC – Jason
Furman, Chairman of the Council of Economic Advisers, issued the
following statement today on the third estimate of GDP for the second
quarter of 2016.
Summary: Real
GDP growth in the second quarter was revised up to 1.4 percent at an
annual rate according to BEA’s third estimate.
Second-quarter
economic growth was revised to 1.4 percent at an annual rate in the
third estimate, up 0.3 percentage point from the second estimate.
Consumer spending grew strongly at 4.3 percent in the second quarter—its
second-fastest quarterly growth since 2006—and, in contrast to recent
quarters, net exports and business fixed investment also added to GDP
growth. Some of this growth was offset by a large decline in inventory
investment (one of the most volatile components of GDP), along with declines in residential investment and government spending. Overall,
growth in the most stable and persistent components of
output—consumption and fixed investment—was revised up to 3.2 percent. 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 by 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.
FIVE KEY POINTS IN TODAY'S REPORT FROM THE BUREAU OF ECONOMIC ANALYSIS (BEA)
1. Real Gross Domestic Product (GDP) increased 1.4 percent at an annual
rate in the second quarter of 2016, according to BEA’s third estimate. Consumer
spending grew 4.3 percent, well above its pace over the prior four
quarters, with faster growth in both durable and nondurable goods
spending. In addition, export growth was positive in the second quarter,
and net exports contributed positively to GDP growth. Nonresidential
fixed investment increased modestly in the second quarter, with strong
growth in intellectual property products investment (see point 4 below)
offset by continued weakness in both structures and equipment
investment. Inventory investment—one of the most volatile
components of GDP—subtracted 1.2 percentage points from GDP growth.
Residential investment contracted following eight straight quarters of
increases.
You can view the complete statement here.
Source: The White House, Office of the Press Secretary
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