The United States' Gross Domestic Product (GDP) expanded at an annual rate of 2.8% in the second quarter, according to the US Bureau of Economic Analysis' first estimate released on Thursday. This growth follows the 1.4% increase recorded in the first quarter and surpasses the market expectation of 2%.
Further details from the report indicated that the Gross Domestic Product Price Index rose by 2.3% in the second quarter, below the market expectation of 2.6%. Additionally, the core Personal Consumption Expenditures (PCE) Price Index increased by 2.9% on a quarterly basis, down from the 3.7% rise in the first quarter but slightly above analysts' estimate of 2.7%.
"The increase in real GDP primarily reflected increases in consumer spending, private inventory investment, and nonresidential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased," the BEA noted in its press release.
Market Reaction to US GDP Data The US Dollar (USD) strengthened against its rivals following the release of the upbeat GDP data. As of the latest update, the USD Index was up 0.1% on the day, trading at 104.40.
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