The following is a cross-post from the Bureau of Economic Analysis Blog

Real gross domestic product (GDP) increased 4.2 percent in the second quarter of 2018, according to the “second” estimate released by the Bureau of Economic Analysis. The growth rate was 0.1 percentage point more than the “advance” estimate released in July. In the first quarter, real GDP increased 2.2 percent.

GDP highlights

The second-quarter increase in real GDP reflected increases in consumer spending on services and goods, business investment, exports, and government spending, while inventory investment and housing investment decreased. Imports, which are a subtraction in the calculation of GDP, decreased.

The increase in consumer spending reflected increases in services and in both durable and nondurable goods.

The increase in business investment reflected increases in intellectual property products, structures, and equipment.

Updates to GDP

The upward revision to the second estimate of GDP growth mainly reflected upward revisions to business investment in intellectual property products and downward revisions to imports.

Corporate profits

Corporate profits increased 3.3 percent at a quarterly rate in the second quarter of 2018 after increasing 1.2 percent in the first quarter.

Profits of domestic nonfinancial corporations increased 5.1 percent after increasing 2.7 percent.

Profits of domestic financial corporations increased 3.8 percent after decreasing 2.1 percent.

Profits from the rest of the world decreased 1.7 percent after increasing 0.8 percent.

Corporate profits increased 7.7 percent from the second quarter of 2017.

For more information, read the full report.