The advance estimate of GDP growth for 1999:IIQ is 2.3%, significantly slower than the 3.4% expected by analysts. The deceleration from the 1999:IQ growth rate of 4.3% primarily reflected a decline in inventory investment and a lower rate of increase in consumer and government spending. Nevertheless, consumer spending grew at a brisk pace (4.0%), indicating that domestic demand is still quite strong. Blue Chip forecasts predict that economic growth for 1999 will exceed the 3.0% historical average rate of economic growth.
Suggested citation: "Economic Activity," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-08, pp. 09-10, 08.01.1999.