The 2000:IQ preliminary GDP estimate confirmed the 5.4% growth rate of the advance estimate as well as the broad contours of the continuing economic expansion. Consumer spending, especially on durable goods, continued to grow at a very brisk rate. Business fixed investment spending was particularly strong, reversing a slowdown of several quarters in equipment spending and outright declines in expenditures on structures. Revisions to advance-estimate components were offsetting and not substantial. Business fixed investment spending was even stronger than initially estimated, while exports seem to have increased rather than decreased, though only slightly more than the increase in the estimate of imports. The Blue Chip forecast of GDP growth for the remainder of 2000 maintains that growth will taper off to the 30-year average of just over 3%.
Suggested citation: "Economic Activity," Federal Reserve Bank of Cleveland, Economic Trends, no. 00-06, pp. 09-10, 06.01.2000.