The decline in real GDP in the second quarter reflected declines in inventory investment, housing investment, federal government spending, and state and local government spending. Exports, consumer spending and imports, which are a subtraction in the calculation of GDP, rose, the US Bureau of Economic Analysis said in a news release.
The decline in inventory investment primarily reflects a decline in retail trade (led by “other” general merchandise stores) and wholesale trade. The increase in imports reflects an increase in services (led by travel), while the increase in exports reflects increases in both goods (led by industrial supplies and materials) and services (led by travel) .
U.S. real gross domestic product (GDP) declined at an annual rate of 0.6% in the second quarter of 2022, following a 1.6% decline in the first quarter. The smaller decrease in the second quarter, compared to the first quarter, mainly reflects a recovery in exports and a smaller decrease in federal government spending.
Real personal disposable income (RPD), i.e. personal income adjusted for taxes and inflation, fell 0.6% (revised) in the second quarter after falling 7.8% in first trimester.
Corporate profits rose 6.1% quarter on quarter in the second quarter after declining 2.2% in the first quarter. Domestic non-financial corporations’ profits rose 9.4% after a 0.3% decline in the first quarter, while domestic financial corporations’ profits fell 4.8% after a 9.3% decline in the first quarter. first trimester. Profits from the rest of the world rose 4.9% after falling 1.5%. Corporate profits rose 8.1% in the second quarter from a year ago.
Fibre2Fashion (KD) News Desk