The recent figures released by the US Commerce Department’s Bureau of Economic Analysis indicate that the US Gross Domestic Product (GDP) grew by 4 percent, which is a seasonally adjusted growth rate.
The GDP growth rate is, however, averaged at 3.27 percent for a period starting from 1947 to 2014 hitting an all-time high of 16.90 percent in the Q1 of 1950 and a record low of -10 percent in 1958 Q1.
The reported advancement in the US GDP is considered a rebound from the revised 2.1 percent contraction recorded in the previous period.
The new growth rate is attributed to the personal consumption acceleration, investment and improvements in the private inventory investment.
In a breakdown released by the Bureau of Economic Analysis better known as BEA, the improvements in the GDP growth rate in this year’s second quarter primarily reflects the upturns in exports, nonresidential fixed investments, government spending, residential fixed investment and increased imports.
The price index for gross domestic purchases went up by 1.9 percent in the 2014 Q2. The index is usually used to measure the prices paid by residents in US. In the first quarter of 2014, the index increased by 1.4 percent.
The index increased by 1.7 percent when energy and food prices are excluded as opposed to the 1.3 percent t recorded in the first quarter.
Meanwhile, the personal consumption expenditures during this period also shot up to 2.5 percent in the Q2 compared to the Q1’s 1.2 percent increase. On the other hand, the durable goods increased from 3.2 percent recorded in the first quarter to 14.0 percent while non-durable goods remained unchanged at 2.5 percent.
The US is considered to have one of the most technologically advanced and diversified economies around the world. According to economists, insurance, finance, rental, real estate, health care, leasing, professional, social assistance, education and business account for more than 40 percent of the GDP.
Wholesale and retail are also integral parts of the GDP contributing 12 percent. The government related services accounts for 13 percent of the GDP.
Generally, economists liked the BEA’s report. Doug Handler, chief U.S. economist for IHS said in a statement: “The trends from 2013 and this most recent data show that the economy is on sound footing and justify a solid forecast for the second half of 2014 of 3.0-3.5 percent growth.”