Today’s second estimate of GDP for the second quarter of 2011 showed that growth was revised down from 1.3 percent to 1.0 percent. BEA revises its GDP estimates frequently, but that’s actually a good thing for policy makers, because revisions incorporate new and better information that becomes available. And that provides a better understanding of what's actually happening in the economy.

Recently, a couple of articles and blogs have criticized BEA’s revisions to GDP, particularly its estimates of GDP during the most recent recession. I understand the frustration. Clearly, the better we understand a problem, the better our solutions will be.

Real gross domestic product (GDP) grew at an annual rate of 1.0% in the second quarter of 2011, according to today’s second estimate. This follows a growth rate of 0.4% in the first quarter of 2011.

Gross Domestic Producat Second Quarter 2011

The June 2011 international trade deficit increased 4.4 percent to $53.1 billion. Exports fell 2.3 percent to $170.9 billion, while imports decreased 0.8 percent to $223.9 billion.

US International Trade in Goods and Services June 2011

Personal income in June 2011 rose 0.1 percent. Nominal personal consumption expenditures (PCE) decreased 0.2 percent and real PCE was unchanged. Nominal disposable personal income (DPI) increased 0.1 percent and real DPI rose 0.3 percent. The personal saving rate as a percentage of DPI was 5.4 percent in June.

personal_income_and_outlays_june_2011.pdf

Real gross domestic product (GDP) grew at an annual rate of 1.3% in the second quarter of 2011, according to today’s advance estimate. This follows a growth rate of 0.4% in the first quarter of 2011, according to revised estimates.