According to its initial (“advance”) estimate, real gross domestic product (GDP) increased at an annual rate of 2.8% in the second quarter of 2024 – offsetting its dismal 1.4% first-quarter increase, the U.S. Bureau of Economic Analysis (BEA) reported Thursday.
Averaged out, real GDP has increased 2.1% in first two quarters, on par with the 2.0% benchmark analysts consider to be normal, or average, growth.
Meanwhile, measures of personal income, the income that is received by persons from all sources, weakened in the second quarter, the BEA reports:
- Current-dollar personal income increased $237.6 billion in the second quarter, down from $396.8 billion growth in the first quarter.
- Disposable personal income growth was 3.6%, down from its 4.8% increase in the first quarter.
- Real disposable personal income slowed to 1.0%, compared with an increase of 1.3% in the first quarter.
- Personal Savings growth fell from $777.3 billion to $$720.5 billion.
- Personal Savings Rate fell to 3.5%, down from 3.8% in the first quarter.
The decline in the personal savings rate is particularly noteworthy, since it reveals that Americans saved, on average, a smaller share of their disposable personal income in the second quarter.
The BEA will publish its first revision (“second estimate”) of second-quarter GDP on August 29, 2024.
The business and economic reporting of CNSNews is funded in part with a gift made in memory of Dr. Keith C. Wold.
