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.

07/01/1998


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 2013 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...
The true cost of lubrication: Three keys to consider when evaluating oils; Plant Engineering Lubrication Guide; 11 ways to protect bearing assets; Is lubrication part of your KPIs?
Contract maintenance: 5 ways to keep things humming while keeping an eye on costs; Pneumatic systems; Energy monitoring; The sixth 'S' is safety
Transport your data: Supply chain information critical to operational excellence; High-voltage faults; Portable cooling; Safety automation isn't automatic
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Plant Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.

Maintaining low data center PUE; Using eco mode in UPS systems; Commissioning electrical and power systems; Exploring dc power distribution alternatives
Synchronizing industrial Ethernet networks; Selecting protocol conversion gateways; Integrating HMIs with PLCs and PACs
Why manufacturers need to see energy in a different light: Current approaches to energy management yield quick savings, but leave plant managers searching for ways of improving on those early gains.

Annual Salary Survey

Participate in the 2013 Salary Survey

In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.

Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.

2012 Salary Survey Analysis

2012 Salary Survey Results

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.