Second-quarter GDP lower than first quarter
The Department of Commerce struck a mild blow to the economy Wednesday, announcing second-quarter gross domestic product climbed at a much weaker 1.7% pace when compared to the first quarter.
That is down from the Commerce Department's first quarter estimate of 2% GDP growth.
On the other hand, gross domestic product numbers improved from the government's initial second-quarter projection of 1.5% GDP growth.
"Expectations were for a modest upgrade to second quarter GDP growth and that is what the markets got," analysts with Econoday wrote. "Real GDP growth was revised up to 1.7% annualized, compared to an initial estimate of 1.5% and to 2% in the first quarter. The second estimate matched analysts' projection for 1.7%."
This is only the second estimate from the Commerce Department. A third and final GDP estimate will be reported in the coming weeks to solidify America's economic growth rate for the period.
Econoday added, "The upward revision was due to higher estimates for personal consumption, nonresidential structures, and exports. Also, import growth was revised down and government purchases fell less than previously estimated."
Meanwhile, analysts with Capital Economics said the upward revision in GDP is old news. "The revision was due to a combination of stronger consumption growth (1.7% versus 1.5%) and a smaller contraction in government spending (-0.9% versus -1.4%) more than offsetting weaker investment growth (3% versus 8.5%)," Capital Economics wrote in a Wednesday report.