U.S. Q2 GDP Growth Finalized at 2.2%, Up Sharply by 0.7 Percentage Point from Preliminary Estimate

[Financial News] The United States economy grew more than initially expected, supported by solid consumer spending.
The U.S. Department of Commerce announced on the 30th (local time) that the final estimate for the United States' real gross domestic product (GDP) growth in the second quarter was 2.2% from the previous quarter at an annualized rate. The figure was sharply revised up by 0.7 percentage point from 1.5%, the preliminary estimate released last month and the market forecast. The final estimate for first-quarter GDP growth was also revised up from 2.1% to 2.5%.
Private consumption, a key pillar of the United States economy, was the main driver of the upward revision. Private consumption rose 3.8% from the previous quarter in the second quarter, while private investment increased 4.6%. Private consumption, which contributed 0.49 percentage point to first-quarter growth, raised its contribution sharply to 2.51 percentage points in the second quarter, effectively driving overall growth. The U.S. Department of Commerce explained, "The figure primarily reflects upward revisions to investment and consumer spending."
After slowing to annualized growth of 0.2% in the fourth quarter of last year, the United States economy posted strong growth in the 2% range for two consecutive quarters this year—2.5% in the first quarter and 2.2% in the second—easing concerns about an economic recession. The International Monetary Fund (IMF) currently forecasts United States economic growth of 2.3% this year. Meanwhile, China's economy grew 4.3% year on year in the second quarter, or 0.9% from the previous quarter.

[email protected] Park Ji-hyun Reporter