Real gross domestic product (GDP) rose 0.5% in the second quarter, matching the pace of the two previous quarters. Business investment contributed the most to second-quarter GDP growth. Final domestic demand grew 0.4%. On a monthly basis, real GDP by industry advanced 0.2% in June.
Business investment in plant and equipment advanced 2.3%, the fastest pace since the second quarter of 2011. Non-farm business inventories also increased substantially.
Investment in housing rose 0.4%, following growth of 2.7% in the first quarter.
Exports slowed to 0.2% in the second quarter, after a gain of 1.0% in the previous quarter. In contrast, imports rose 1.6%, up from the first quarter increase of 1.3%.
Consumer spending on goods and services advanced 0.3% in the second quarter, following a similar increase in the previous quarter (+0.2%). However, this was down from the pace of 0.7% in the fourth quarter of 2011.
Final domestic demand advanced 0.4%, similar to the pace of the previous five quarters.
Goods production grew 0.9% and the output of service industries increased 0.3% in the second quarter. Mining and oil and gas extraction, and construction were the main contributors to overall growth. Gains were also recorded in manufacturing, agriculture, wholesale trade, the finance and insurance sector and professional services. In contrast, retail trade and utilities declined.
Oil and gas extraction increased 1.0% in the second quarter, as an increase in crude petroleum production was partly offset by a decrease in natural gas extraction. Mining excluding oil and gas extraction grew 2.7%, as increased output at potash as well as copper, nickel, lead and zinc mines outweighed declines at coal mines. Potash production rebounded from first quarter shutdowns, which were partly attributable to lower foreign demand. Construction grew on the strength of engineering construction and residential building construction. Manufacturing rose 0.5%, as a 1.1% increase in durable goods production, particularly machinery and transportation equipment, more than offset a 0.3% decline in non-durable goods manufacturing.
Expressed at an annualized rate, real GDP expanded 1.8% in the second quarter, matching the rate of the previous quarter. By comparison, real GDP in the United States grew 1.7% in the second quarter.
