The Bureau of Economic Analysis (BEA) announced today that GDP grew at a seasonally-adjusted annual rate of 3.3 percent during the 2nd quarter, up from a previous estimate of 2.8 percent growth. Major contributors to the growth in GDP were business investment, consumer spending, and private inventory investment. Business investment, the lack of which drove the economy into recession in 2001, increased by 12.5 percent in the 2nd quarter and has now increased for five consecutive quarters. GDP has increased for eleven consecutive quarters.
Highlights:
* During the 2nd quarter of 2004, GDP grew at a seasonally-adjusted annual rate of 3.3 percent. Over the past year, GDP has increased by 4.8 percent.
* Business investment was stronger than expected, growing at a robust 12.5 percent annualized pace in the 2nd quarter.
* Export growth was strong and the revised 2nd quarter trade deficit was slightly smaller than previously estimated.
* Residential investment, primarily home building, was also revised up and is now estimated to have grown at a very strong 16.5 percent annualized rate. This is the second strongest quarterly growth in home building in eight years.
Source: Congressional Joint Economic Committee
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