Here Are the Highlights From Today’s G.D.P. Report

Top number for US gross domestic product is the sum of the positive and negative forces, and the important details:

  • Spending and consumingcapital, which plays a major role in the economy, grew by 1% on a year-on-year basis, a marked slowdown from previous months due to a drop in purchases of goods and a modest increase in spending on services.

  • Build a housealso known as residential fixed investment, fell 14% with annual interest rates driven by rising interest rates, leaving mortgages out of reach for more homebuyers.

  • Inventory, which measures the amount of goods that have been produced or imported but have not yet been sold, depletes the overall figure by more than two percentage points on an annualized basis. Companies still replenished their inventory in the second quarter, but slower than in the first quarter, which dragged down overall growth.

  • business building, so-called fixed investment in non-residential buildings, grew 11.7% year-on-year, as factory and warehouse construction – also an interest-sensitive sector – slowed.

  • Federal government spending fell 3.2% on a year-on-year basis, as stimulus money continued to dry up and oil was released from the Strategic Petroleum Reserve, although defense spending rose 2.5% as military aid poured in. into Ukraine.

  • Final sales to domestic buyerswhich some economists favor as a measure for inventory cuts and volatile government spending, fell 0.3%.

    (All figures are reported on a seasonally adjusted basis.)

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