Washington, DC, September 29, 2005--Gross domestic product rose at a seasonally adjusted 3.3% annual rate in the second quarter, matching earlier estimates, according to the Commerce Department's second revision to the index.
GDP for the month matched economist’s forecasts. Growth in the second quarter was down from a 3.8% growth rate in the first quarter.
Corporate profits after taxes rose 5.3% to $975 billion in April through June, a smaller gain than the previously reported 6.9% rise. Earnings dipped 0.1% in the first quarter. Year over year, profits climbed 9.9% as compared to the second quarter of 2004.
Inflation gauges for the second quarter were revised slightly higher. The government's price index for personal consumption rose 3.3%, up from the previous estimate for the quarter of 3.2% and well above the first quarter's 2.3% climb. The PCE price gauge excluding food and energy rose 1.7% in the second quarter, up from the previously estimated 1.6% but below the first quarter rate of 2.4%.
The price index for gross domestic purchases, which measures prices paid by U.S. residents, rose at a 3.3% rate, higher than the previously estimated 3.1% increase and above the first quarter rate of 2.9%. The chain-weighted GDP price index increased at a 2.6% rate, up from 2.4%, but below the first quarter's 3.0% climb.
The GDP report said real final sales of domestic product -- that is, GDP less the change in private inventories -- advanced at a 5.6% annual rate in the second quarter. That was higher than the previously estimated 5.4% increase and well above the first-quarter's 3.5% growth.
Second-quarter consumer spending climbed 3.4%, up from the previously estimated 3.0% gain but below the first quarter's 3.8% advance. Purchases of durable goods increased 7.9% and non-durables rose 3.6%.
Business spending rose 8.8%, above the earlier estimated 8.4% increase and the first-quarter's 5.7% climb. Investment in structures advanced 2.7% and equipment and software rose 10.9%.
Second-quarter federal government spending went up 2.4%, the same rate as in the first quarter. State and local government outlays increased 2.6%, after rising 1.6% in the first quarter.
