Revised US GDP shows robust pandemic bounce back
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The news: The US economy grew more strongly than estimated in recent years, with consumer spending driving much of the gains, according to revised data in an annual update from the Bureau of Economic Analysis (BEA).
The numbers: Second-quarter GDP increased at a previously estimated annualised 3.0% rate, while first-quarter growth was revised upwards to 1.6%, up from 1.4%.
Revised data showed GDP expanded 5.2% from Q2 2020 through Q1 2024, up from 4.9%.
Gross domestic income (GDI), an alternative measure of economic growth, surged to 3.4% in Q2 from an earlier estimate of 1.3%, narrowing the gap with the more traditional GDP gauge.
Gross domestic purchases prices, the prices of goods and services purchased by residents, rose 2.4% in Q2 2024, as previously estimated.
The context: The annual update included revisions covering 2019 through Q1 2024, showing the US economy rebounded more strongly from the pandemic than previously thought.
The revised data suggest that consumer spending, boosted by fiscal stimulus and ultra-low interest rates in the wake of the pandemic, played a major role in driving growth.
The gap between GDP and GDI also narrowed, suggesting a more consistent picture of the economy’s health. Corporate profits were revised upwards, reflecting greater resilience, while inflation rates remained steady.
The source: BEA
