Real gross domestic product increased at a 3.9% annual rate in 1998:IIIQ, according to preliminary estimates released in late November. This was stronger than both the 3.3% advance estimates released a month earlier and the 2.1% Blue Chip forecast of sluggish-but-strengthening growth through the end of next year. Consumption spending and inventory investment accounted for the bulk of the increase, with smaller additions to residential investment and government spending. Expenditures on producers’ durable equipment declined very slightly, business investment in structures fell for the third consecutive quarter, and net exports continued to recede.
Suggested citation: “Economic Activity,” Federal Reserve Bank of Cleveland, Economic Trends, no. 98-12, pp. 10-11, 12.01.1998.