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Statement from Under Secretary Rebecca Blank on the Second Estimate of Gross Domestic Product in the Second Quarter 2010

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FOR IMMEDIATE RELEASE

Friday, August 27, 2010

CONTACT OFFICE OF PUBLIC AFFAIRS

202-482-4883

Statement from Under Secretary Rebecca Blank on the Second Estimate of Gross Domestic Product in the Second Quarter 2010

The U.S. Commerce Department’s Bureau of Economic Analysis today released the second estimate of gross domestic product (GDP) for the second quarter of 2010.  Growth in real GDP was lowered to 1.6 percent at an annual rate from the advance estimate of 2.4 percent.  Most private-sector analysts had expected a revision to 1.4 percent in the second quarter.  The downward revision reflected a wider trade deficit and lower inventories than were originally reported.

“The downward revision to GDP growth stemmed primarily from unusual and surprisingly large swings in inventories and net exports late in the quarter,” said Under Secretary Rebecca Blank. “Although the economy has slowed somewhat, American consumers increased their spending for a fourth consecutive quarter with disposable personal income increasing at more than a 4 percent annual rate.  Business investment also grew at a solid pace.  Investment in equipment and software specifically grew at more than a 20 percent annual rate for the second straight quarter."