U.S. 2nd Quarter GDP Fell at a Slower Rate than Expected
The U.S. Bereau of Economic Analysis released the advance estimate of the U.S. real Gross Domestic Product in the 2nd quarter. Total output of goods and services fell at an annual rate of 1.0% in the 2nd qurater after inflation adjustment. In the 1st quarter, real GDP fell 6.4%. The percent decrease in real GDP in the 2nd quarter was less than expected. Most analysts expected it to decrease by 1.5%. The seasonally-adjusted level of real GDP in the 2nd quarter stood at an annual rate of $12.9 trillion.
The better-than-expected performance of the U.S. economy signals the end of the recession is in sight and that the 2nd quarter of 2009 could be the end of the downward trend. Survey data on the manufacturing sector and the housing sector have shown encouraging signs of recovery. The stock market has rallied since March 2009 with activity level not seen since November of 2008.
Changes in U.S. Real GDP (Annual Rate %)
Data source: Bereau of Economic Analysis
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