Commerce Department Says Q2 GDP Grew 1.4%, Up From Previous Report Of 1.1%
The latest Commerce Department data shows that in Q2 2016, US gross domestic product grew 1.4%, up from 0.8% growth in Q1. The new report represents an upward Q2 GDP revision from August, when the last Q2 GDP data was announced, and when Q2 GDP growth was estimated at 1.1%. The AP reported that consumer spending “grew at a 4.3 percent rate” in the second quarter, slightly down from the 4.4 percent growth previously estimated. The AP noted that much of GDP growth’s upward revision came from “an increase in spending on structures such as office buildings.” Still, GDP growth has been sluggish over the last nine months, averaging just around 1%, largely due to “a sharp slowdown in the growth of inventories as businesses with unsold goods cut back on restocking their store shelves.” The Wall Street Journal noted that so far in 2016, the economy’s average GDP growth of 1% is a “sharp slowdown” from the 2.1% average growth in the years following the recession, itself well below historical averages for GDP growth.
What This Means For Small Businesses
Though Q2 GDP has been revised to a slightly higher rate than previously announced, the bottom line remains that Q2 GDP’s lackluster results are a reflection of the sluggish economy that is negatively effecting small business owners. As NFIB Chief Economist Bill Dunkelberg in the latest Small Business Economic Trends report, “The current economic environment is not a good one for strong or sustained growth.”
Reuters also covered the Commerce Department’s Q2 GDP revised growth.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.