WASHINGTON - The U.S. second quarter gross domestic product indicated stronger growth, rising 1.2% after a downward revised 0.8% gain in the first quarter, but was well below expectations for a 2.4% gain, data released Friday by the Bureau of Economic Analysis showed.
The stronger pace of 2Q growth was due to a sharp acceleration in PCE to a 4.2% gain and a slightly narrower trade gap, as analysts expected. But a drop in inventories, and declines in residential investment, nonresidential investment, and government spending cut into the expected gain.
The chain price index rose 2.2% in 2Q, while the core PCE price index was up 1.7% in 2Q and up 1.6% year/year.
Real final sales were up 2.4% in the quarter, compared with 1.2% in the previous quarter.
Annual revisions to the data did little to alter the growth picture in recent years. 2015 GDP growth was revised up to a 2.6% rate from 2.4% previously, while 2014 growth was unrevised at 2.4% and 2013 growth was revised up to 1.7% from 1.5%. Overall, average annual growth for 2013-2015 was revised up only slightly to 2.2% from a 2.1% pace based on the previously released data.
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