US Economy Hits the Gas in 2nd Quarter

A sharp rise in durable goods manufacturing helped power a 4.6% increase in U.S. real gross domestic product (GDP) in the second quarter of 2014, the Department of Commerce announced today.

An 8.0% increase in durable-goods manufacturing, which includes production of motor vehicles and computers and electronic products, was the largest increase since the fourth quarter of 2011, the government announced in a revised data report.

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Non-durable goods manufacturing also ticked up in the second quarter, to 5.4% from 2.4% in the first quarter.

GDP had decreased 2.1% in the first quarter, in part a result of severe winter storms.

"Manufacturing value-added increased 1.9% in the second quarter, up $2.045 trillion in the first quarter to $2.085 trillion. On a year-over-year basis, manufacturing value-added rose 4.4%," said NAM Chief Economist Chad Moutray. "This suggests that the sector has experienced decent growth in output over the past 12 months, even with softness earlier in the year. Manufacturing accounted for 12.0% of GDP in the second quarter."

Manufacturing value-added increased 1.9 percent in the second quarter, up $2.045 trillion in the first quarter to $2.085 trillion. On a year-over-year basis, manufacturing value-added rose 4.4 percent. This suggests that the sector has experienced decent growth in output over the past 12 months, even with softness earlier in the year. Manufacturing accounted for 12.0 percent of GDP in the second quarter. - See more at: http://www.shopfloor.org/2014/11/manufacturers-added-0-81-percentage-points-to-real-gdp-growth-in-the-second-quarter/32517#more-32517