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GDP Increases 3% in Second Quarter, More Than Double The Growth Seen in First Quarter

GDP growth also exceeded economists' expectations

Janet Yellen
Janet Yellen / Getty Images
August 30, 2017

The U.S. economy expanded in the second quarter of 2017 as real gross domestic product grew at a rate of 3 percent, according to the second estimate released by the Bureau of Economic Analysis.

Real GDP represents the value of the production of goods and services in the economy and is adjusted for inflation.

The second quarter growth in 2017 of 3 percent, which includes performance from April, May, and July, more than double the 1.2 percent growth seen in the first quarter of 2017.

According to economists surveyed by Reuters, second quarter growth was projected to increase at 2.7 percent.

Real GDP in the second quarter of 2017 did show an increase from the previous year, when GDP expanded at 1.1 percent in the second quarter of 2016, according to the second estimate.

The 3 percent GDP growth was also revised up from the advance estimate, which showed economic growth increasing at 2.6 percent.

"The increase in real GDP in the second quarter reflected positive contributions from [Personal Consumption Expenditures], nonresidential fixed investment, exports, federal government spending, and private inventory investment that were partly offset by negative contributions from residential fixed investment and state and local government spending," the report said.

The bureau will release its third estimate for the second quarter of 2017 on Sept. 28.

Published under: Economy