Economic Snapshot: Second estimate of Q2 GDP reports 3.7 percent increase

After an advance estimate of 2.3 percent, the Bureau of Economic Analysis is reporting real gross domestic product in the second quarter grew 3.7 percent. This follows an increase of 0.6 percent in the first quarter.

GDP

Real GDP increased at an annual rate of 3.7 percent in the second quarter of 2015. In the advance estimate last month, the increase in real GDP was 2.3 percent.

With the second estimate, nonresidential fixed investment and private inventory investment increased, after the advance estimate reported they had decreased.

The increase in real GDP reflected positive contributions from personal consumption expenditures, exports, state and local government spending, nonresidential fixed investment, residential fixed investment and private inventory investment. Imports, which are a subtraction in the calculation of GDP, increased.

New home sales

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Sales of new single-family houses were at a seasonally adjusted annual rate of 507,000 in July. This is 5.4 percent above the revised June rate of 481,000 and 25.8 percent above the July 2014 estimate of 403,000.

The median sales price of new houses sold in July was $285,900 and the average sales price was $361,000. The seasonally adjusted estimate of new houses for sale at the end of July was 218,000, which represents a supply of 5.2 months at the current sales rate.

Pending home sales

The Pending Home Sales Index increased 0.5 percentage points to 110.9 in July after a decrease in June. The index is now 7.4 percent higher than July 2014 and has increased year-over-year for 11 consecutive months.

The index in the Northeast rose 4.0 percentage points to 98.8 and is now 12.1 percent above the previous year. In the Midwest, the index remained unchanged at 107.8 but is 5.7 percent above July 2014.

Pending home sales in the South increased 0.6 percent to an index of 124.2 and is now 6.5 percent above the previous year. The index in the West decreased 1.4 percent to 103.0 but remains 7.5 percent up YOY.

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