The following is the unedited transcript of the news release from the U.S. Bureau of Economic Analysis.


Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 2.8% in the second quarter of 2008, according to final estimates released by the Bureau of Economic Analysis.

The increase in real GDP in the second quarter primarily reflected positive contributions from exports, personal consumption expenditures (PCE), nonresidential structures, federal government spending, and state and local government spending that were partly offset by negative contributions from private inventory investment, residential fixed investment, and equipment and software. Imports, which are a subtraction in the calculation of GDP, decreased.

The acceleration in real GDP growth in the second quarter primarily reflected a larger decrease in imports than in the first quarter, an acceleration in exports, a smaller decrease in residential fixed investment, an acceleration in nonresidential structures, an upturn in state and local government spending, and an acceleration in PCE that were partly offset by larger decreases in inventory investment and in equipment and software.

Final sales of computers contributed 0.17 percentage point to the second-quarter growth in real GDP after contributing 0.05 percentage point to the first-quarter growth. Motor vehicle output subtracted 1.01 percentage points from the second-quarter growth in real GDP after subtracting 0.41 percentage point from the first-quarter growth.

The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 4.2 percent in the second quarter, the same as in the preliminary estimate; this index increased 3.5 percent in the first quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 2.2 percent in the second quarter, the same increase as in the first quarter.

Real personal consumption expenditures increased 1.2 percent in the second quarter, compared with an increase of 0.9 percent in the first. Real nonresidential fixed investment increased 2.5 percent, compared with an increase of 2.4 percent. Nonresidential structures increased 18.5 percent, compared with an increase of 8.6 percent. Equipment and software decreased 5.0 percent, compared with a decrease of 0.6 percent. Real residential fixed investment decreased 13.3 percent, compared with a decrease of 25.1 percent.

Real exports of goods and services increased 12.3 percent in the second quarter, compared with an increase of 5.1 percent in the first. Real imports of goods and services decreased 7.3 percent, compared with a decrease of 0.8 percent.

Real federal government consumption expenditures and gross investment increased 6.6 percent in the second quarter, compared with an increase of 5.8 percent in the first. National defense increased 7.3 percent, the same increase as in the first. Nondefense increased 5.0 percent, compared with an increase of 2.9 percent. Real state and local government consumption expenditures and gross investment increased 2.5 percent, in contrast to a decrease of 0.3 percent.

The real change in private inventories subtracted 1.50 percentage points from the second-quarter change in real GDP, after subtracting 0.02 percentage point from the first-quarter change. Private businesses decreased inventories $50.6 billion in the second quarter, following a decrease of $10.2 billion in the first quarter and a decrease of $8.1 billion in the fourth.

Real final sales of domestic product -- GDP less change in private inventories -- increased 4.4 percent in the second quarter, compared with an increase of 0.9 percent in the first.


Gross domestic purchases

Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- decreased 0.1 percent in the second quarter, in contrast to an increase of 0.1 percent in the first.

Gross national product

Real gross national product -- the goods and services produced by the labor and property supplied by U.S. residents -- increased 2.1 percent in the second quarter, compared with an increase of 0.1 percent in the first. GNP includes, and GDP excludes net receipts of income from the rest of the world, which decreased $20.2 billion in the second quarter after decreasing $22.6 billion in the first; in the second quarter, receipts decreased $23.7 billion, and payments decreased $3.6 billion.

Current-dollar GDP

Current-dollar GDP -- the market value of the nation''s output of goods and services – increased 4.1 percent, or $143.7 billion, in the second quarter to a level of $14,294.5 billion. In the first quarter, current-dollar GDP increased 3.5 percent, or $119.6 billion.