US real gross domestic product (GDP) increased at an annual rate of 2.5 % in the second quarter this year, the US commerce department announced Thursday.
This is a welcome acceleration from an initial estimate of 1.7% released last month and better than market expectations, Xinhua reported. In the first quarter, US real GDP gained 1.1%.
The increase in real GDP in the second quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, private inventory investment, non-residential fixed investment, and residential fixed investment that were partly offset by a negative contribution from federal government spending, said the department.
Real personal consumption expenditures increased 1.8% in the second quarter, with durable goods leading the advance by growing 6.1% from April to June.
Personal consumption accounts for about 70% of the overall US economic activity, thus being the main engine of the nation's economic growth.
Against the backdrop of a housing recovery, real non-residential fixed investment increased 4.4% in the second quarter, in contrast to a decrease of 4.6% in the first quarter, noted the report.