US Q2 GDP growth revised up to 2.2%; PCE inflation revised down to 5.0%

The United States revised its second-quarter GDP growth rate significantly higher than previously reported.

The Bureau of Economic Analysis at the Commerce Department said Wednesday (local time) that its third estimate of real GDP growth for the second quarter came in at an annualized rate of 2.2%, up 0.7 percentage points from the preliminary estimate of 1.5% released last month.

The BEA said the upward revision reflected higher estimates for investment, consumer spending and government expenditure. First-quarter growth was also revised up, from 2.1% to 2.5%, a gain of 0.4 percentage points.

Inflation readings, however, moved lower. The second-quarter PCE price index rose 5.0%, down 0.3 percentage points from the preliminary estimate, while the core PCE price index — which strips out volatile food and energy prices — was revised down 0.3 percentage points to 3.3%.

Corporate profits increased by $384 billion in the second quarter, a gain that was $16.9 billion smaller than the preliminary estimate. The advance estimate for third-quarter GDP is scheduled for release on Oct. 29.