WASHINGTON – Real gross domestic product expanded at a 1.0% annual rate in the second quarter, revised lower from the 1.3% initial estimate as consumer spending edged higher, the Commerce Department reported Friday.
Consumer spending increased 0.4% for the quarter, revised up from the 0.1% rise estimated in the initial GDP reading last month. Inventory investment and exports were revised lower.
Core personal consumption expenditures increased 2.2% for the quarter, revised up from a 2.1% gain. It was the largest increase in core PCE since the second quarter of 2008.
Economists polled by Thomson Reuters expected GDP to be revised to 1.1% and for PCE to increase 2.1%, according to the median estimate.
Second quarter nonresidential fixed investment was revised higher to a 9.9% increase as equipment and software spending increased.
Corporate profits in the second quarter, reported for the first time Friday, increased $57.3 billion, or 3.0%, from the previous quarter, the largest increases in a year.
Government spending fell 0.9% in the second quarter, revised slightly higher from a 1.1% drop estimated earlier. State and local government spending was also revised higher to a 2.8% decline from a 3.4% drop.
First quarter GDP was unrevised at 0.4% growth and the first quarter core PCE deflator was also unrevised at a 1.6% increase.
