GDP rate increases to 7.2 percent

Manufacturing News, Source : TheManufacturer.com
Published : 30 Oct 2003 17:01

Gross domestic product (GDP) increased sharply in the third quarter to an annual rate of 7.2 percent, the U.S. Department of Commerce reported today, the fastest rate since 1984.

This figure was up from a 3.3 percent annual rate in the second quarter of 2003.

An upturn in exports and a decline in imports helped boost the GDP numbers. Real exports of goods and services increased 9.3 percent in the third quarter, in contrast to a decrease of 1.0 percent in the second. Real imports of goods and services increased 0.1 percent, compared with an increase of 8.8 percent last quarter.

Consumer spending also increased, to a 6.6 percent growth rate, compared to last quarter’s 3.8 percent. Child tax-credit checks, received by families this quarter, strengthened consumer spending.

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