According to initial Commerce Department estimates, the economy slowed to a 2.2% rate of growth in the third quarter, down from 4.7% in 1996:IIQ. Except for business fixed investment and the pace of inventory accumulation, most sectors weakened. Consumer spending was flat, while residential investment and federal government spending declined. Net exports continued to fall, a result of the relative strength of the U.S. economy.
Suggested citation: “Economic Activity,” Federal Reserve Bank of Cleveland, Economic Trends, no. 96-11, pp. 08-09, 11.01.1996.