Exports Push U.S. GDP to 3.3% Growth

Aug. 28, 2008
The Commerce Department revised up last month's estimate of a 1.9% of growth in GDP.

U.S. economic growth accelerated to a 3.3% annual pace in the second quarter as exports fueled activity, the government said August 28 in a revised estimate of gross domestic product (GDP). The Commerce Department revised up last month's estimate of a 1.9% of growth in GDP.

The latest figures, helped somewhat by a massive economic stimulus, suggest the world's biggest economy had more momentum than previously thought by analysts, many of whom anticipated recession. Still, few analysts expect this pace to continue since consumer spending is sluggish and a rebound in the dollar may curb growth in exports.

The revised report showed trade alone accounted for 3.10 percentage points in the overall growth rate. It showed exports surged 13.2% (up from an earlier estimate of 9.2%) while exports fell 7.6% instead of 6.6%.

Consumer spending, the largest component of economic activity, was up a modest 1.7%, just 0.2 points more than previously estimated, despite a massive $168 billion government stimulus package that sent out tax rebates to tens of millions of people.

The main drag on growth remained the housing sector, with investment in residential property slumping 15.7%, not as bad as the 25.1% slide in the first quarter.

Business spending grew 2.2% and government expenditures by 6.8%.

A key inflation index linked to GDP rose 4.2% while core prices excluding food and energy were up 2.1%.

Copyright Agence France-Presse, 2008

Popular Sponsored Recommendations

Global Supply Chain Readiness Report: The Pandemic and Beyond

Sept. 23, 2022
Jabil and IndustryWeek look into how manufacturers are responding to supply chain woes.

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

How Organizations Connect and Engage with Frontline Workers

June 14, 2023
Nearly 80% of the 2.7 billion workers across manufacturing, construction, healthcare, transportation, agriculture, hospitality, and education are frontline. Learn best practices...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!