First quarter GDP revised to show more growth

The Commerce Department's "preliminary" report (meaning it's subject to one more revision) on first-quarter 1998 GDP showed annualized growth of 4.8% -- even better than the 4.2% gain originally estimated.


The Commerce Department's "preliminary" report (meaning it's subject to one more revision) on first-quarter 1998 GDP showed annualized growth of 4.8% -- even better than the 4.2% gain originally estimated. And the news about inflation was exceptionally favorable as well, with the price index for gross domestic purchases unchanged between the fourth quarter of last year and the first quarter of 1998.

The first quarter GDP increase was driven by strong gains in consumer spending, capital spending for new equipment, and residential investment. Consumer purchases are estimated to have risen at a 6.1% rate during the first quarter of this year, more than twice the growth rate recorded for October-December 1997. Durable goods purchases soared to a 15.9% annualized growth rate during the first three months of this year after rising by a scant 1.9% in the fourth quarter of 1997. Nondurable goods purchases increased 6.5% in the first quarter, after having posted absolute declines in two of the previous three quarters. And services expenditure growth (which represents almost 60% of total consumer spending) was a solid 4% -- well above the 2.9% average gain recorded during the past 3 yr.

The news wasn't all good, however. The advance GDP report showed that business investment in new buildings declined for the second consecutive quarter and for the fourth time in the past five quarters. The first-quarter 1998 loss was a sharp 7.4%, the largest quarterly decline for this series in more than 5 yr.

The most significant loss, at least in terms of its implications for the overall economy during the balance of 1998, was the 3% decline posted by the export sector. After expanding by 12.3% during 1997, exports during the first three months of 1998 shrunk for the first time during this more than 7-yr-old economic expansion. At the same time, imports surged to a 17.7% growth rate in the first quarter. Taken together, this led to a huge increase in the nation's already-yawning trade deficit and subtracted several percentage points from potential GDP.

No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Safety for 18 years, warehouse maintenance tips, Ethernet and the IIoT, GAMS 2016 recap
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
Strategic outsourcing delivers efficiency; Sleeve bearing clearance; Causes of water hammer; Improve air quality; Maintenance safety; GAMS preview
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Safety at every angle, Big Data's impact on operations, bridging the skills gap
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role of plant safety and offers advice on best practices.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me