Data for the Classroom: Weak Q2 GDP Growth, Downward Revisions

Data for the Classroom from Ed Dolan’s Econ Blog http://dolanecon.blogspot.com/ US GDP: Weak Q2 Growth, Downward Revisions Posted Aug. 1, 2011 Terms of Use: These slides are made available under Creative Commons License Attribution—Share Alike 3.0 . You are free to use these slides as a resource for your economics classes together with whatever textbook you are using. If you like the slides, you may also want to take a look at my textbook, Introduction to Economics , from BVT Publishers.

US GDP Growth Q2 2011
US GDP grew at an estimated 1.3% annual rate in Q2 2011
The January-March 2011 quarter was the 8 th consecutive quarter of growth since the end of the recession that lasted from Dec 2007 to Jun 2009
The growth rate of 1.3% disappointed many observers. Approximately 2.5% is considered necessary to prevent unemployment from rising, when increases in the labor force and productivity are taken into account
Posted Aug. 1, 2011 on Ed Dolan’s Econ Blog http://dolanecon.blogspot.com

Major Revisions Were Made to Previously Reported Data
Q1 growth was revised sharply downward to just 0.4 % from 1.8%
Revised 2008 and 2009 data show that the recession was much deeper than previously thought

Recovery of GDP Has Not Reached Pre-recession Peak
After the latest revisions, it now appears US real GDP has not yet reached the level of its pre-recession peak (Q3 2007)

Sources of US GDP Growth Q2 2011
Consumption barely grew in Q2 2011
Investment grew at 0.87%, with strong business fixed investment helping to make up for weak residential investment
Federal government spending grew slightly but was more than offset by continued decline of state and local government spending
Net exports grew strongly on good export growth and slowing growth of imports

Data for the Classroom: Weak Q2 GDP Growth, Downward Revisions

by Ed Dolan on Aug 02, 2011

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Data for the Classroom: Weak Q2 GDP Growth, Downward Revisions — Presentation Transcript