Real gross domestic product (GDP) of the US increased at an annual rate of 2.3 per cent in 2017, according to the ‘second’ estimate released by the Bureau of Economic Analysis. In 2016, real GDP had increased 1.5 per cent. The GDP estimate is based on more complete source data than were available for the ‘advance’ estimate issued a month earlier.
The increase in real GDP in 2017 primarily reflected positive contributions from personal consumption expenditures (PCE), non-residential fixed investment, and exports. These contributions were partly offset by a decline in private inventory investment. Imports, which are a subtraction in the calculation of GDP, increased, the Bureau said on its website.
The acceleration in real GDP from 2016 to 2017 reflected upturns in non-residential fixed investment and in exports and a smaller decrease in private inventory investment. These movements were partly offset by decelerations in residential fixed investment and in state and local government spending. Imports, which are a subtraction in the calculation of GDP, accelerated.
Current-dollar GDP increased 4.1 per cent, or $761.7 billion, in 2017 to a level of $19,386.2 billion, compared with an increase of 2.8 per cent, or $503.8 billion, in 2016.
The price index for gross domestic purchases increased 1.8 per cent in 2017, compared with an increase of 1.0 per cent in 2016. The PCE price index increased 1.7 per cent, compared with an increase of 1.2 per cent. Excluding food and energy prices, the PCE price index increased 1.5 per cent, compared with an increase of 1.8 per cent.
During 2017, measured from the fourth quarter of 2016 to the fourth quarter of 2017, real GDP increased 2.5 per cent, compared with an increase of 1.8 per cent during 2016. The price index for gross domestic purchases increased 1.9 per cent during 2017, compared with an increase of 1.4 per cent during 2016.