Real gross domestic product (GDP) grew at an annual rate of 5.8% in 2002:IQ, according to the advance estimate from the national income and product accounts released April 26. This is the fastest rate of real GDP growth since 1999:IVQ. Although spending on durable goods declined, overall consumer spending remained robust, increasing 3.5% from 2001:IVQ. In addition, consumers gave a boost to the housing sector, where residential investment grew nearly 16%. Government expenditures, concentrated primarily in national defense, also bolstered output growth. Business fixed investment and imports, in contrast, were drags on real GDP growth. However, increased imports signal stronger consumption demand.
Suggested citation: "Economic Activity," Federal Reserve Bank of Cleveland, Economic Trends, no. 02-05, pp. 10-11, 05.01.2002.