U.S. Economic Growth Accelerates in Q2

WASHINGTON (Reuters) – U.S. economic growth accelerated in the second quarter amid strength in consumer spending, the government confirmed on Thursday.

Gross domestic product (GDP) increased at an unrevised 3.0% annualized rate last quarter, according to the Commerce Department’s Bureau of Economic Analysis in its third estimate of second-quarter GDP. Economists polled by Reuters had forecast GDP would remain at a 3.0% pace.

Growth in the first quarter was also revised up, increasing from 1.4% to 1.6%.

The government revised national accounts data from Q1 2019 through Q1 2024, showing economic growth and corporate profits in 2023 were stronger than previously estimated.

These revisions narrowed the gap between GDP and gross domestic income (GDI), an alternative measure of economic growth that some economists argue indicated GDP was overstating the economy’s health.

GDI, which measures economic activity from the income side, increased at a 3.4% rate last quarter, revised up from an originally estimated 1.3%. It increased at a 3.0% pace for January-March, up from 1.3% previously reported.

In principle, GDP and GDI should be equal; however, discrepancies occur due to their differing independent source data.

The average of GDP and GDI, also known as gross domestic output (GDO) and considered a better measure of economic activity, increased at a 3.2% rate last quarter, revised up from a previously estimated 2.1%. GDO advanced at a 2.3% pace in Q1, also revised from 1.4%.