The U.S. Department of Commerce reports that real gross domestic product (GDP) increased at an annual rate of 2.1 percent in the second quarter of 2019, compared to 3.1 percent in the first quarter.
The increase in real GDP in the second quarter reflected positive contributions from personal consumption expenditures (PCE), federal government spending, and state and local government spending. The drop from the first quarter was due to deceleration of private inventory investment, exports, nonresidential fixed investment and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
Disposable personal income increased $193.4 billion, or 4.9 percent, in the second quarter, compared with an increase of $190.6 billion, or 4.8 percent, in the first quarter. Personal saving was $1.32 trillion in the second quarter, compared with $1.37 trillion in the first quarter. The personal saving rate — personal saving as a percentage of disposable personal income — was 8.1 percent in the second quarter, compared with 8.5 percent in the first quarter.