Real Gross Domestic Product, that is, the value of everything a nation produces, increased in the second quarter at a slightly higher rate than previous estimates predicted.

GDP increased at an annual rate of 1.4% in the second quarter, according to the third estimate released by the U.S. Bureau of Economic Analysis.

This is up from the first quarter, when real GDP increased 0.8%, and the second estimate for this quarter when it increased 1.1%.

While this data is based on a more complete source of data than was available for the second estimate last month, the only substantial change was in nonresidential fixed investment, which showed an increase.

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(Source: U.S. Bureau of Economic Analysis)

If economists were not happy about the number before, there is little hope they are impressed with the new estimate, which is just 0.2% above the first estimate. About the first estimated increase of 1.2% in the second quarter, Capital Economics Chief Economist Paul Ashworth said:

“The disappointing 1.2% annualized gain in second-quarter GDP growth, combined with the downward revisions to gains in the preceding two quarters, make a September interest rate hike much less likely.” 

So how does he feel about the third prediction? 

"Second-quarter GDP growth was revised up to 1.4% annualised, from 1.1%, but that still means GDP growth averaged little more than 1% annualised over the first half of this year," Ashworth said. 

The increase was due to positive contributions from personal consumption expenditures, exports and nonresidential investment, but was offset by a decrease in negative contributions from private inventory investment, residential fixed investment and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased.

The current dollar GDP increased 3.7%, or $168.5 billion, in the second quarter to a total of $18,450.1 billion. This is up from the first quarter’s increase of 1.3% or $58.8 billion.

Many will look to GDP as they determine the right course for raising interest rates which could come in December, however according to a blogger for one of largest online investment communities GPD is pretty much overrated.