August 27, 2009

GDP estimate unchanged, Commerce says

The second estimate of the U.S. gross domestic product for the second quarter beat expectations by remaining unchanged, the government said Thursday.

Economists predicted the Bureau of Economic Analysis would drop the previous estimate from a 1 percent drop to a contraction of 1.5 percent. But the bureau, an office of the Commerce Department, kept the previous estimate intact.

Some numbers changed. A drop in consumer spending was less severe than the previous estimate, but businesses cut inventories further in the more recent estimate.

The overall drop of 1 percent is considered positive, as it shows a sharp improvement over the first quarter, when the GDP fell 6.4 percent.