Preliminary estimates of the national income and product accounts showed that real gross domestic product increased at an annual rate of 1.1% in 2002:IIQ. August’s preliminary estimate of real GDP growth was essentially unchanged from July’s advance estimate. Personal consumption, residential investment, and government spending all increased. However, the growth rate for each of these categories was lower than in the previous four quarters. On a somewhat positive note, business fixed investment decreased only 2.6%—less than half its rate of decrease over the past year. The increase of $77.9 billion (chained 1996 dollars) in imports was more than double the increase in exports. Imports, the greatest drag on the economy, reduced real GDP growth by 2.8%. Changes in inventories gave GDP growth its biggest boost (1.4%).
Suggested citation: "Economic Activity," Federal Reserve Bank of Cleveland, Economic Trends, no. 02-09, pp. 10-11, 09.01.2002.