The advance (initial) GDP estimate for 2004:IIQ, released July 30 by the Commerce Department, revealed that annualized real output growth was 3.0%. This is considerably lower than the 4.1% Blue Chip forecast for the quarter.
Personal consumption expenditures were fairly soft in 2004:IIQ, growing at an annual rate of 1.0%. Retailers blame June’s unusually cool weather for the month’s low consumption expenditures. Expenditures on durables fell 2.5%, which came on the heels of a decline in durables spending in 2004:IQ. In contrast, residential investment was up smartly, rising at an annual rate of 15.4%. Business fixed investment continues to exhibit robust growth.
Suggested citation: "Economic Activity," Federal Reserve Bank of Cleveland, Economic Trends, no. 04-08, pp. 10-11, 08.01.2004.