US GDP increased to 1.7% pace in second quarter

31 July 2013 16:17  [Source: ICIS news]

HOUSTON (ICIS)--The US economy modestly accelerated its growth in the second quarter of this year thanks to increases in personal consumption expenditures, exports and investments, the Bureau of Economic Analysis announced on Wednesday.

GDP for the quarter clocked in at a 1.7% annual rate, a rise from the first quarter’s rate of 1.1%, which the bureau downwardly revised from its previous estimate of 1.8%.

Dragging on the Q2 GDP rate was decreased federal spending due to the sequester budget cuts and an increase in imports, said the bureau, which is part of the Commerce Department.

The gross domestic purchases price index, which measures prices paid by US residents, increased 0.3% in the second quarter, a decrease from the Q1 rate of 1.2%.

Disposable personal income jumped 3.4% in the second quarter, compared with a decrease of 7.2% in Q1 2013.

Federal Reserve chairman Ben Bernanke told Congress in mid-July that the US economic recovery was continuing at a moderate pace but still faced downside risks amid uncertain federal fiscal policy and slowing global growth.

By: Jeremy Pafford
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