|Metrics 2.0» Economic Indicators» GDP:|
- Q1 2006: 5.6%, the fastest in 2 1/2 years.
- Q2 2006: 2.6%
- Q3 2006: 2.0%
- Q4 2006: 3.5%
- Full Year 2006 GDP growth: 3.4%, compared to 3.2% in 2005
|The U.S. government cut its economic growth forecasts through 2008 on Tuesday, citing the weakness of America’s housing market. In an updated economic forecast, the administration said it expects inflation-adjusted GDP to increase 3.1% this year, down from its June forecast of 3.6%. GDP growth is firther expected to slow to 2.9% in 2007, down from its previous estimate of 3.3% (WSJ). In 2008, the government sees growth of 3.1%, slightly lower than its prior estimate of 3.2%||Economy 2006
GDP : 3.6%
U.S. real gross domestic product (GDP) growth slows to 1.6% in the third quarter, the lowest growth in more than 3 years, according to estimates released today by the Bureau of Economic Analysis. U.S. GDP grew at 2.6% during Q2 and a robust 5.6% during Q1 of 2006. The third quarter's 1.6% growth rate was the weakest since the first quarter of 2003, when the economy grew at a 1.2% annual rate.
|US GDP Growth||2.3%||2.4%||3.5%||2.6%||2.6%|
|Source: Blue Chip Economic Indicators|
Weakness in housing and autos were particular drags on the economy in the third quarter, the newsletter said. The government will release its first snapshot on third quarter economic growth on October 27.
Second-quarter corporate profits grew 18.5% from the same quarter a year ago. Profits of financial corporations increased 29.6% and profits of nonfinancial corporations increased 10.7%.
The economy grew at an annual rate of 2.9% in the second quarter of 2006, compared with 5.6% in the first quarter, according to the "preliminary" estimates released by the U.S. Bureau of Economic Analysis. The growth rate was revised up 0.4 percentage point from the "advance" estimates released in July. BEA also released its first estimate of second-quarter corporate profits, which increased 20.5% from the same quarter a year ago.
The deceleration in second-quarter GDP growth primarily reflected a deceleration in consumer spending on durable goods, a downturn in investment in equipment and software, and a downturn in Federal government spending. The upward revision from the advance estimates reflected revisions to exports of goods, investment in nonresidential structures, and inventory investment.
Excluding food and energy prices, the price index for gross domestic purchases increased 2.9% in the second quarter, compared with an increase of 3.0% in the first.
Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 6.3%, or $201.3 billion, in the second quarter to a level of $13,209.7 billion. In the first quarter, current-dollar GDP increased 9.0%, or $277.9 billion.