The Commerce Department recently pared its estimate of third-quarter economic growth from 2.2% to 2.0%. Downward adjustments to the overall pace of inventory accumulation and to net exports dominated the revisions, but were partially offset by upward corrections to business fixed investment and state and local government spending. Although the 2.0% growth rate is below the exceptional second-quarter rate of 4.7%, it is consistent with estimates of U.S. potential economic growth, which generally range from 2.0% to 2.3%.
Suggested citation: “Economic Activity,” Federal Reserve Bank of Cleveland, Economic Trends, no. 96-12, pp. 09-10, 12.01.1996.