US: Real GDP grows at an annual rate of 2.1% in Q2

The US economy grew at an annual pace of 2.1% in the second quarter, falling short of the earlier estimate of 2.4%. According to the Bureau of Economic Analysis, “the updated estimates primarily reflected downward revisions to private inventory investment and nonresidential fixed investment, which were partially offset by an upward revision to state and local government spending.” Real GDP grew by 2.0% in the first quarter.

The Personal Consumption Expenditure (PCE) Price Index climbed 2.5%, a 0.1 percentage point decrease from the prior estimate. Excluding food and energy prices, the PCE price index grew 3.7 percent, a 0.1 percentage point decrease from the previous month.