Changes In GNP And Selected Economic Statistics In The Second And Third Quarters, 1984

Data released by the Commerce Department's Bureau of Economic Analysis show continued gradual change in the real GNP's rate of growth in 1984, which has eased from an annual growth rate of 10.1 percent in the first quarter lo 7.1 percent in the second quarter, and then to 2.7 percent in the third quarter. The automobile industry strike in the last half of September had only a small effect, estimated at less than a 0.1 percentage point reduction in the growth rate. Among the components that comprise the GNP, personal consumption and fixed investment grew at lower real rates in the third quarter than in the second quarter, while net exports decreased. Personal consumption expenditures increased $0.4 billion in the third quarter, compared with an increase of $20.1 billion in the second quarter. Nonresidential fixed investment increased $3.9 billion in the third quarter, compared with $9.6 billion in the second quarter. The other component of fixed investment--residential investment--increased from $60.8 billion in the second quarter to $61.2 billion in the third quarter. Real net exports of goods and services decreased $1 1.3 billion in the third quarter, compared with a $3.1 billion decrease in the second quarter. Although exports increased from an annual rate of $144.7 billion to $150.2 billion, imports increased much more, from an annual rate of $1 56.2. billion to $172.8 billion (table 1).