Slowdown in Economy Won't Last

The federal government???s Bureau of Economic Analysis (BEA) today released its second- quarter 2017 gross output (GO) report, and I was surprised that adjusted GO grew only 2.9% in nominal terms and only 1.7% in real terms.

Not only is this figure less than gross domestic product (GDP) growth, which was a robust 3.1%, but it was much less than the first-quarter GO numbers. Mining was the fastest-growing sector, but even that only grew 8%, compared to 62% in the first quarter.

Wholesale and retail trade grew hardly at all. My full press release can be found at

GO is the top line in national income accounting. It incorporates spending at all stages of production and it also is a leading economic indicator. Adjusted GO hit $41.25 trillion in second-quarter 2017. GDP is the bottom line of federal accounting for economic growth and measures only the finished goods and services that form the final stage of production. GDP is now at $19.1 trillion.

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