Real gross domestic product increased at an annual rate of 3.8 percent in the second quarter of 2007, according to final estimates released Thursday by the Bureau of Economic Analysis. In the first quarter,
real GDP increased 0.6 percent.
Personal consumption expenditures increased 1.4 percent in second quarter compared to a 3.7 percent increase in first quarter. Nonresidential fixed investment increased 11 percent, compared with a 2.1 percent increase the previous quarter. Nonresidential structures rose 26.2 percent, compared with 6.4 percent. Equipment and software expenditures increased 4.7 percent versus 0.3 percent. Real residential fixed investment fell 11.8 percent versus a 16.3 percent decrease in first quarter.
Exports of goods and services increased 7.5 percent compared with 1.1 percent in first quarter. Imports of goods and services (a subtraction in the GDP calculation) decreased 2.7 percent versus a 3.9 percent increase the previous quarter.
Federal government consumption expenditures and gross investment was up 6 percent compared to a 6.3 percent decrease in first quarter. National defense increased 8.5 percent in contrast to a 10.8 percent decrease. Nondefense increased 0.9 percent versus 3.8 percent. State and local government consumption expenditures and gross investment increased 3 percent, about the same as first quarter.