As expected, the economy grew more slowly in the second quarter than in the first. According to the Commerce Department’s advance estimates, real GDP grew at an annualized rate of 1.4% in 1998:IIQ. This stands in stark contrast to the first quarter’s revised growth rate of 5.5%, but the slowdown may not warrant much concern. At several other times in the current expansion, GDP growth has slipped for a quarter or two before rebounding. Forecasters currently expect real GDP to grow at a rate of 2.2% in the third quarter and 3.3% for the entire year.
Suggested citation: “Economic Activity,” Federal Reserve Bank of Cleveland, Economic Trends, no. 98-08, pp. 09-10, 08.01.1998.