US economy sees 3.9% GDP growth in second quarter of 2015

NYCThe USA’s real gross domestic product: the total value of production, exempting cost of production and adjusting for price changes, grew by 3.9 per cent in the second quarter of 2015.

The figure, according to the US Bureau of Economic Analysis is the third real GDP estimates produced so far for the period.

A statement issued by the Bureau said the latest estimate which is an increase from 3.7 per cent in its previous estimate is based on “more complete source data” than were available for its previous estimate.

The bureau said the increase in real GDP reflects a decrease in imports and an increase in exports, increase in state and local government spending as well as non-residential fixed investment, partly offset by deceleration in private inventory investment and federal government spending.

Real gross domestic income (GDI) which is the value of the costs incurred and the incomes earned in the production of goods and services, increased by 0.7 percent in the second quarter, compared with an increase of 0.4 percent in the first.

Corporate profits from current production also increased by $70.4 billion in the second quarter (with adjustments to compensate for capital gain), in contrast to a $123 billion decrease in the first quarter.

The profits of financial corporations increased by $34.3 billion in the second quarter, in contrast with a decrease of $3.1 billion in the first.

By Emmanuel Odonkor

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