According to the Commerce Department’s final estimate, real GDP grew 5.4% in 1998:IQ, a substantial upward revision from the previous estimate of 4.8%. Much of the difference results from a larger-than-expected buildup of inventories, and a smaller-than-anticipated decline in net exports. Despite this revision to net exports, foreign trade is still an area of concern. In April, the U.S. trade deficit in goods and services continued to increase, reaching a record $14.5 billion, largely because of a deterioration in exports.
Suggested citation: “Economic Activity,” Federal Reserve Bank of Cleveland, Economic Trends, no. 98-07, pp. 09-10, 07.01.1998.