US 2Q GDP growth confirmed at 1.5%, matching initial estimate

The US economy grew at an annualized rate of 1.5% in the second quarter, matching the initial estimate, according to a revised government report.

The Commerce Department said Wednesday (local time) that its second estimate of second-quarter GDP showed growth of 1.5% on an annualized, seasonally adjusted basis — in line with both the advance estimate released last month and market expectations.

Unlike South Korea, the United States calculates and reports GDP growth by converting the quarter-on-quarter rate into an annualized figure.

Growth slowed from the 2.1% recorded in the first quarter. The Commerce Department said the deceleration reflected a decline in government spending and a slowdown in investment and export growth, though an acceleration in consumer spending partially offset those drags.

Personal consumption expenditures, which account for more than two-thirds of US economic activity, rose 3.4% in the second quarter — far outpacing the 0.5% gain in the first quarter.

Real final sales to private domestic purchasers, which combines consumer spending and private fixed investment, rose 4.2% in the second quarter, revised up 0.3 percentage point from the advance estimate.

Imports, which are subtracted in GDP calculations, climbed 12.5% in the second quarter.