In 2000:IIIQ, gross domestic product (GDP) grew at a 2.2% annual rate, its slowest in four years. This final estimate, released late in December, is 0.2 percentage point below the preliminary estimate of a month earlier and fully 0.5 percentage point lower than October’s advance estimate. Downward revisions were common to all sectors except imports and government, with a major contribution (–0.15 percentage point) from a lower export estimate. The slowdown in real GDP from the second quarter to the third primarily reflected lower inventory investment and less federal government spending, as well as deceleration in nonresidential fixed investment. These negative changes were partly offset by a noticeable rebound in personal consumption expenditures. After slowing markedly in the second quarter, personal consumption spending rose at a healthy 4.5% annualized rate in the third. Disposable personal income is still growing more slowly than consumption expenditures, and the personal saving rate dipped below zero in the third quarter.
Suggested citation: "Economic Activity," Federal Reserve Bank of Cleveland, Economic Trends, no. 01-01, pp. 11-12, 01.01.2001.