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No change in new GDP estimate; growth remains at 4.2% in Q2

September 27, 2018

US real gross domestic product grew at an annual rate of 4.2% in the second quarter, according to the third estimate of GDP growth released today by the US Commerce Department. The new estimate is unchanged from the previous estimate.

The general picture of economic growth remains the same; a downward revision to private inventory investment was offset by small upward revisions to most other GDP components. Imports, which are a subtraction in the calculation of GDP, were revised down slightly.

Real GDP for the US increased 2.2% in the first quarter.

MarketWatch’s poll of economists had forecast GDP would be revised up to a 4.3% rate. And Reuters reported US economic growth accelerated in the second quarter, its fastest pace in nearly four years as previously estimated, putting the economy on track to hit the Trump administration’s goal of 3% annual growth.