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e-Edge Newsletter v.19 n. 32 – Released August 4, 2015

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v.19 n. 32 – Released August 4, 2015

This Week’s Headlines:

GDP Growth in Q2, Turnaround in Q1, and Revisions to Annual Rates

The BEA provided a first-look at economic activity during the second quarter in the U.S. Real (inflation-adjusted) Gross Domestic Product (GDP) accelerated modestly in the second quarter of this year, with an annualized 2.3% growth rate over the first quarter. Much of the growth came from increase in personal consumption expenditures (up 2.9%) with solid increases in both consumer durable and nondurable goods. Although gross private domestic investment was essentially flat (up 0.3%), residential rose by an impressive 6.6% (annualized) over the prior quarter, a long awaited increase in this critical segment of the economy. Government expenditures grew by 0.8% and net exports were flat, although exports were up by 5.3% and imports (which are much larger than exports by dollar volume) rose by 3.5%.

Important revisions also appeared in this report. Previous estimates of first-quarter GDP showed a quarter-to-quarter decrease, but the most recent revision moved into positive territory with an increase of 0.7% (annualized) over the prior quarter. On the other hand, annual real GDP growth figures were revised downwards in 2012 and 2013, resulting in a slight decrease in GDP growth over the period 2011 through 2014:


The large decline occurred in 2013 was attributed to lower estimates of consumer spending in a year when the economy turned in a sluggish performance at best.

Consistent with recent history, the economy started the year slowly but picked up steam in the second quarter. If history repeats itself, quarterly GDP will grow in the two to three percent range through the rest of the year, with consumers lending momentum to the overall economy. (Robert Kleinhenz)

Source: U.S. Bureau of Economic Analysis

Events of Interest

Save the Date!

Wednesday, September 30, 2015: LAEDC Fall Economic Forecast

Location: Omni Los Angeles Downtown Hotel; 251 South Olive St., Los Angeles 90012

Join the LAEDC on September 30th, 2015 for our Fall Economic Forecast, featuring long-range analysis and the topic “From Boomers to Millennials: The Future of the Urban Environment”.

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