WASHINGTON — Second quarter GDP growth was revised up slightly to a 3.1% annual rate from the 3.0% pace in the second estimate.
The small upward adjustment was due to in large part to stronger inventory growth than previously reported. This was offset by downward adjustments to both residential and nonresidential fixed investment. PCE, government spending, and net exports were only modest factors.
As a result of the mix of revisions, real final sales were revised down to a 2.9% gain from the 3.0% increase in the second estimate.
The second estimate of second quarter Gross Domestic Income was a 2.9% gain, unrevised from the first estimate. This keeps the GDP/GDI average at a 3.0% gain for the second quarter, up from the 2.0% gain in the second quarter.
The key price measures were generally unrevised in the final estimate, with the chain price index still up 1.0%.
The closely watched core PCE price index was unrevised from the 0.9% rate posted in the second estimate. As a result, the year/year rate for the measure held steady at 1.5%, still below the 1.8% rate seen in the first quarter.
Overall, the data still point to an acceleration of growth from the first quarter, with little price pressures. Analysts expect growth to slip a bit in the third quarter to about 2.5%, with the impact of the August and September hurricanes a downside risk.
