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According to the advance estimate, real GDP increased at an annualized rate of 1.7 percent in the second quarter, following a 1.1 percent increase in the first quarter. Over the last four quarters, real GDP is up 1.4 percent. Contributions to the second quarter increase in GDP came from consumption, residential and business fixed investment, inventories, and exports.
Personal consumption expenditures increased 1.8 percent during the quarter, contributing 1.2 percentage points to GDP growth, and over the past four quarters, consumption has increased of 1.9 percent. After a decline in the first quarter due primarily to a drop in investment in structures, business fixed investment increased 4.6 percent in the second quarter. Residential investment, which has averaged quarterly increases of 14.4 percent since mid-2011, increased 13.4 percent. Residential and business fixed investment contributed 0.4 and 0.6 percentage point to overall GDP growth, respectively, while the change in private inventories contributed an additional 0.4 percentage points.
Exports increased 5.4 percent during the quarter, while imports increased 9.5 percent. The net contribution of international trade to GDP growth was −0.8 percentage points. The pullback in government spending seemed to slow somewhat in the second quarter. Government spending decreased just 0.4 percent, following declines of 6.5 percent in the fourth quarter of 2012 and a 4.2 percent in the first quarter of this year.