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The Top Line: Decline in Inventories Leads to Continued Slow Growth

Aug 26, 2016

The Bureau of Economic Analysis released its revised second quarter GDP estimate today, reporting that the economy grew just 1.1 percent (down from the previous estimate of 1.2 percent), following a first quarter estimate of 0.8 percent. Robust consumer spending and positive net exports were nearly offset by weak investment and a decline in government spending. In particular, a sharp reduction in inventories subtracted 1.26 percentage points from GDP. For more analysis, see the Top Line analysis below or available online here.