Real gross domestic product (GDP) grew at an annual rate of 6.1% in 2002:IQ, the fastest pace since 1999:IVQ. Consumer spending combined with an extraordinary housing market to boost output growth: Consumption increased 3.3% from 2001:IVQ, while residential investment rose nearly 15%. Strong government spending also contributed. Although business fixed investment declined for the fifth consecutive quarter, its 6.2% decrease in 2002:IQ was an improvement over the previous four quarters. Both export and import spending increased for the first time since 1999:IIIQ; however, the increase in import spending presented the greatest drag on the economy.
Suggested citation: "Economic Activity," Federal Reserve Bank of Cleveland, Economic Trends, no. 02-07, pp. 10-11, 07.01.2002.