The advance estimate from the national income and product accounts shows that real gross domestic product (GDP) grew at a 1.1% annualized rate during 2002:IIQ. Consumer spending for the quarter rose 1.9%, which was considerably less than the 3.1% growth rate of the last four quarters. Even so, it remained the strongest contributor to real GDP growth. On a somewhat more positive note, business fixed investment fell only 1.6%, a marked improvement on the 6.1% decline of the last year. The change in inventories contributed 1.2 percentage points of real GDP growth as the economy began to accumulate inventory for the first time since 2000:IVQ. Exports’ increase of nearly 12% was dwarfed by a 23.5% surge in imports, which created the greatest economic drag by lowering real output growth 2.8 percentage points.
Suggested citation: "Economic Activity," Federal Reserve Bank of Cleveland, Economic Trends, no. 02-08, pp. 10-11, 08.01.2002.