US real GDP decreases at 0.9% annual rate in Q2 2022: BEA estimate

In the first quarter, current-dollar GDP increased by 6.6 per cent, or $383.9 billion.

The decrease in real GDP reflected decreases in private inventory investment, residential fixed investment, federal government spending, state and local government spending, and nonresidential fixed investment that were partly offset by increases in exports and personal consumption expenditures (PCE). Imports, which are a subtraction in the calculation of GDP, increase, BEA said in a release.

The decrease in private inventory investment was led by a decrease in retail trade, mainly general merchandise stores and motor vehicle dealers. The increase in imports reflected an increase in services .

The increase in exports reflected increases in both goods (led by industrial supplies and materials) and services.

The price index for gross domestic purchases increased by 8.2 per cent in Q2 2022 compared with an increase of 8 per cent in Q1.

ALCHEMPro News Desk (DS)