US: Real GDP contracts by 0.6% in Q2

The US economy contracted at an annualized rate of 0.6% in the second quarter, the US Bureau of Economic Analysis’ (BEA) third and final estimate showed on Thursday. This reading came in line with the market expectation and the previous estimate.

GDP, the standard economic growth measure, is the value of goods and services produced in the United States. Economic activity in the nation is also assessed from incomes earned and the costs incurred in the production of GDP, expressed as Gross Domestic Income (GDI).

Revisions showed GDI rebounding 5.5% in 2021, revised down from the previously published 7.3%. GDI contracted 2.3% in 2020 instead of 2.9% as initially estimated. The downward revision in 2021 reflected revisions to several components, including net interest income, private industry wages and salaries, proprietors income as well as corporate profits.

The US Dollar Index showed no immediate reaction to this report and was last seen gaining 0.4% on the day at 113.15.