Real GDP growth over the past four quarters was a paltry 1.2%, but even this was better than the 0.3% increase registered for 2001:IIQ. If the latest expansion is considered investment-led, then second-quarter data suggest that the current slowdown may be described the same way. The weak growth of GDP in 2001:IIQ resulted largely from investment, which was responsible for a whopping –2 percentage points. One reason why the expansion and the slowdown may both be investment led is the huge run-up—and subsequent decline—in stock prices.
Suggested citation: "Economic Activity," Federal Reserve Bank of Cleveland, Economic Trends, no. 01-10, pp. 10-11, 10.01.2001.