The advance estimates for the national income and product accounts, released January 30, have led many to ask whether the current recession may be over. According to the advance estimate, real GDP growth was 0.2% (annualized rate) in 2001:IVQ. Spending on personal consumption grew at a whopping 5.4% (annualized rate) from the previous quarter, its highest growth rate since 2000:IQ. Much of this spending was spurred by durable goods, especially October’s surge in auto sales. Government spending also posted an extraordinary gain of 9.2% (annualized), based in large part on strong spending for the war in Afghanistan.
Suggested citation: "Economic Activity," Federal Reserve Bank of Cleveland, Economic Trends, no. 02-02, pp. 10-11, 02.01.2002.