Final domestic demand was up 0.7 percent after a flat first quarter. The increase was mainly due to higher household final consumption expenditure. Household final consumption expenditure was up 0.9 percent, as a result of increased outlays on goods (+1.2 percent) and services (+0.7 percent).
Business gross fixed capital formation increased 0.8 percent following two consecutive quarterly declines. Investment in residential structures (+2.9 percent) contributed the most to the overall gain. Ownership transfer costs were up 9.0 percent after declining in the previous two quarters.
Businesses accumulated $7.0 billion in inventories, down from $14.5 billion in the first quarter. Retail trade reduced its inventories of non-durable goods by $2.8 billion.
Exports of goods and services increased 4.2 percent following a 0.2 percent decline in the previous quarter. Exports of goods rose 4.4 percent. Imports of goods and services increased 2.7 percent.
Expressed at an annualized rate, real GDP expanded 3.1 percent in the second quarter.