Joint Economic Committee Analysis of 2nd Quarter GDP
Washington, DC—The Bureau of Economic Analysis (BEA) reported today that real gross domestic product (GDP) grew at an estimated 3.0% annual rate in the 2nd quarter of 2004, the 11th straight quarter of economic growth in the economy. In response to the report, the Joint Economic Committee released its own analysis.
“Though we experienced a slowing in the second quarter of 2004, the economy continues on a steady path of growth,” said JEC Chairman Bob Bennett. “As the new data shows continued job growth and improved consumer confidence, I remain confident this trend will continue.”
Growth moderated in the second quarter from an upwardly revised 4.5% growth in the 1st quarter and was largely due to a pause in consumer spending. That pause is partially attributed to swings in motor vehicle sales. The BEA also released annual revisions to past data to incorporate more complete data than previously available. Average quarterly growth between the 2nd quarter of 2003 and the 1st quarter of 2004 was revised up to 5.1% from 4.8%. After adjusting for inflation, GDP has increased at a robust 4.8% pace over the past year. The annual revisions suggest that growth over the past year has been steadier than initially estimated.
The full Joint Economic Committee report can be viewed at: https://www.jec.senate.gov/_files/Q22004GDP.pdf
Highlights:
· 2nd Quarter Growth Moderated to 3.0%. The 2nd quarter marks the 11th straight quarter of growth.
· Consumer Spending Took a Pause. Consumer spending grew 1.0% in the 2nd quarter following the rapid 4.1% pace of advance in the 1st quarter.
· Business Investment Has Grown for Five Straight Quarters, increasing at a robust 8.9% rate in the 2nd quarter. Business spending to restock inventories added to the growth of investment, but by less than in the 1st quarter.
· Price Indexes Showed a Moderation of Inflation Pressures. Inflation eased, even outside of increases in energy and food prices.
“Though we experienced a slowing in the second quarter of 2004, the economy continues on a steady path of growth,” said JEC Chairman Bob Bennett. “As the new data shows continued job growth and improved consumer confidence, I remain confident this trend will continue.”
Growth moderated in the second quarter from an upwardly revised 4.5% growth in the 1st quarter and was largely due to a pause in consumer spending. That pause is partially attributed to swings in motor vehicle sales. The BEA also released annual revisions to past data to incorporate more complete data than previously available. Average quarterly growth between the 2nd quarter of 2003 and the 1st quarter of 2004 was revised up to 5.1% from 4.8%. After adjusting for inflation, GDP has increased at a robust 4.8% pace over the past year. The annual revisions suggest that growth over the past year has been steadier than initially estimated.
The full Joint Economic Committee report can be viewed at: https://www.jec.senate.gov/_files/Q22004GDP.pdf
Highlights:
· 2nd Quarter Growth Moderated to 3.0%. The 2nd quarter marks the 11th straight quarter of growth.
· Consumer Spending Took a Pause. Consumer spending grew 1.0% in the 2nd quarter following the rapid 4.1% pace of advance in the 1st quarter.
· Business Investment Has Grown for Five Straight Quarters, increasing at a robust 8.9% rate in the 2nd quarter. Business spending to restock inventories added to the growth of investment, but by less than in the 1st quarter.
· Price Indexes Showed a Moderation of Inflation Pressures. Inflation eased, even outside of increases in energy and food prices.
