Third Estimate of GDP for the Second Quarter of 2014

(White House) Today’s revision confirms that economic growth in the second quarter was strong, and other recent data suggest that this momentum has continued into the subsequent months. While these indicators demonstrate that the economy has come a long way in recovering from the Great Recession, there is more work to do to both boost growth and ensure that growth translates into greater financial security for working families. The President will continue to do everything in his power to support investments in job creation and encourage higher incomes for workers.
FIVE KEY POINTS IN TODAY’S REPORT FROM THE BUREAU OF ECONOMIC ANALYSIS
1. Real gross domestic product (GDP) increased 4.6 percent at an annual rate in the second quarter of 2014, the fastest pace since the fourth quarter of 2011, according to the third estimate from the Bureau of Economic Analysis. The strong second-quarter growth represents a rebound from a first-quarter decline in GDP that largely reflected transitory factors like unusually severe winter weather and a sharp slowdown in inventory investment. Growth in consumer spending and business investment picked up in the second quarter, and residential investment increased following two straight quarters of decline. Additionally, State and local government spending grew at the fastest quarterly rate in five years. However, net exports subtracted from overall GDP growth, as imports grew slightly faster than exports. Real gross domestic income (GDI), an alternative measure of the overall size of the economy, was up 5.2 percent at an annual rate in the second quarter.

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