The bureau of economic analysis published today July 30th its first estimate of the growth rate of the U.S. Gross Domestic Product for the second quarter of 2013. Based on the current report, U.S output of goods and services growth rate rose by an annual rate of 1.7% in Q2 2013 – this result is higher than what many had anticipated. This higher than expected growth in GDP is due, in part, to the growth in personal consumption expenditures (PCE), exports, nonresidential fixed investment, private inventory investment, and residential investment, which was offset by decline in real federal government consumption expenditures. This news is likely to pull up the US dollar and drag down precious metals prices today.
Based to the latest report, the real U.S GDP in the second quarter of 2013 (first estimate) expanded by an annual rate of 1.7% (quarter-over-quarter). In the first quarter, the GDP rose by only 1.1% after it was initially estimated at 2.5%. In the fourth quarter GDP increased by 0.4%; in the third quarter the GDP grew by 1.3%. Many predicted the GDP will rise by roughly 1.1% in annual terms. Therefore, this positive news is likely to pull up the financial markets including commodities and equities.
The chart below presents the developments of the real U.S. GDP (in annual rates) growth rate between 2009 and 2013. As seen, the recent real GDP growth rate in the second quarter was the highest rate since the third quarter in 2012.
In Canada, the monthly GDP by industry report came out and as expected the GDP grew by 0.2% (month-over-month).
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