Economics for your Classroom fromEd Dolan’s Econ BlogAs Exports Soar, US Economy Closes In on Fed’s TargetsPosted September 26, 2014 презентация

Economy Closes In on Fed’s Targets Posted September 26, 2014

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2014 Strongest in Four Years

The third estimate from the Bureau of Economic Analysis released on September 26 showed that US real GDP grew at an annual rate of 4.6 percent in Q2 2014
That is even faster than the 4.2 percent previously reported, and is the best performance in four years

of the business cycle is the downward movement of GDP from its previous peak
It is common to refer to the first phase of growth following the trough (low point) of the recession as a recovery. During that phase, idle equipment goes back on line and workers return to their jobs.
Official reports call the entire growth phase of the cycle an expansion, but many writers apply that term only after GDP has reached its previous peak.
The latest data show that the expansion resumed in Q2 2014 after a winter downturn

September 26, 2014 Ed Dolan’s Econ Blog

2014 was broadly based
Consumption grew at a slightly faster than average pace
Investment enjoyed one of its strongest quarters in years
An increase in expenditures of state and local government more than offset a slight decrease in Federal expenditures
Exports, which have been a strong point of the recovery, grew even more rapidly than previously reported

Contribution by sector to the 4.6% GDP growth in Q2 2014

Note: Imports are recorded in the national accounts with a negative sign, so the -.1.77 percentage points shown here represent an increase in imports

September 26, 2014 Ed Dolan’s Econ Blog

point in the US economy throughout most of the recovery
Exports dropped sharply in the winter, due in part to unusually bad weather
They recovered in Q2, showing their strongest growth in two years, all the more remarkable in view of the weak economies of several US trading partners

September 26, 2014 Ed Dolan’s Econ Blog

consumption expenditures grew at a 2.3 percent annual pace in Q2
The Fed defines its policy targets as 2 percent inflation measured by the PCE deflator and 5.25 to 5.75 percent unemployment
Both of those indicators fell within of plus or minus one percentage point of the targets as of midyear

September 26, 2014 Ed Dolan’s Econ Blog

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