U.S. Posts Second Consecutive Drop in Real GDP

Real gross domestic product fell at a 0.9 percent annualized rate in the second quarter versus a 1.6 percent rate of decline in the first quarter (see first chart). Over the past four quarters, real gross domestic product is up 1.6 percent.

Real final sales to private domestic purchasers, a key measure of private domestic demand, has shown greater resilience. It was unchanged in the second quarter following a 3.0 percent pace of increase in the first quarter (see first chart). Over the last four quarters, real final sales to private domestic purchasers are up 1.7 percent. The data shown in the current report are based on incomplete information and will likely be revised in subsequent releases.