Second-quarter US GDP growth confirmed, but historic numbers revised up
US economic activity expanded by 3% year-on-year in the second quarter of 2024, with the US Bureau of Economic Analysis confirming an earlier estimate, though GDP growth calculations from previous years were hiked up.
The figures matched the secondary estimates reported a month ago, and confirmed that GDP growth accelerated strongly from an upwardly revised 1.6% expansion in the first quarter, which was the lowest growth rate since the second quarter of 2022.
While the overall growth rate was unchanged from previous estimates, the BEA upwardly revised private inventory investment and federal government spending, but made downward revisions to non-residential fixed investment and exports. Imports, which are a subtraction in the calculation of GDP, were revised up.
The BEA also released the annual update of the national economic accounts, revising the average annual GDP rate between 2018 and 2023 to 2.3% from an earlier published figure of 2.1%. Over the same time period, the annual rate of real gross domestic income growth was also revised to 2.2% from 1.8% previously.
Michael Pearce, deputy chief US economist at Oxford Economics, said the revised estimates showed "a more vigorous US economy".
"The annual GDP revisions show the US economy grew even stronger than previously thought in recent years and reaffirm that recent performance has been solid as well. What's more, the recovery is built on strong foundations, with incomes growth revised significantly higher and productivity growth faster than previously presumed," Pearce said.