Second Quarter 1984 General Economic And Mineral Industry Performance - The U.S. Economy

General economic conditions continued to improve in the second quarter of 1984 as real gross national product advanced at an annual rate of 7.5 percent (table 1). This followed an even larger first quarter annual rate increase of 10.1 percent. The slower second quarter growth was greeted as a sign that the economy is not over-heating. The signs of slowed growth in some sectors suggest that the recovery may continue well into 1985 without the inflation symptomatic of a rapid recovery. Most of the slowdown in growth was absorbed by business inventories, personal consumption of durable goods, and residential fixed investment. Business inventories grew by only 68 percent as much as in the first quarter, personal consumption for durable goods grew by 58 percent of the first quarter rate, and residential fixed investment slowed to only 44 percent of the first quarter growth. Sectors with accelerated growth in the second quarter included personal consumption of nondurable goods and of services, which increased at annual rates of 9.6 percent and 3.8 percent, respectively, and Federal purchases of goods and services, which increased at an annual rate of 47.9 percent.