According to the final estimate from the national income and product accounts, real gross domestic product (GDP) increased at a 1.3% annual rate in 2002:IIQ, substantially lower than its vigorous showing in 2002:IQ. Personal consumption expenditures rose a moderate 1.8%; this category alone contributed 1.2 percentage points to GDP growth. Exports and changes in inventories also contributed significantly to the second-quarter increase in real GDP. Exports increased almost $35 billion (chained 1996 dollars). This reversed the trend of the last four quarters and contributed 1.3 percentage points to real GDP growth. But import spending increased more than twice as much as export spending. Imports were the heaviest drag, subtracting 2.7 percentage points from GDP growth.
Suggested citation: "Economic Activity," Federal Reserve Bank of Cleveland, Economic Trends, no. 02-10, pp. 10-11, 10.01.2002.