US economy grows 2.5% in second quarter
Washington: The US real gross domestic product (GDP) increased at an annual rate of 2.5 percent in the second quarter this year, the Commerce Department announced Thursday, leaving its previous estimate unchanged.
This is still a welcome acceleration from an initial estimate of 1.7 percent released last month, Xinhua reported.
In the first quarter, the US real GDP gained 1.1 percent.
The increase in real GDP in the second quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, non-residential fixed investment, private inventory investment, and residential fixed investment, which were partly offset by a negative contribution from federal government spending, the department said.
Real PCE increased 1.8 percent in the second quarter, compared to an increase of 2.3 percent in the first quarter, the report said.
Personal consumption accounts for about 70 percent of the overall US economic activity, making it the main engine of economic growth.
The recovery in the housing sector saw real residential fixed investment rise 14.2 percent in the second quarter, compared with an increase of 12.5 percent in the previous quarter.