U.S. Economy Growth Rate Remains Positive
The increase was attributed to three factors:
- a decrease in consumer spending
- an increase in the investments made by American companies
- an increase in spending by the Federal government
Company spending included durable goods like computers as well as increases in inventory levels. The increase also was greater than first predicted by the government.
Even though the increase was deemed as positive, second quarter inflation rose slightly at an annual rate of 2.1 per cent. Still, analysts predict that Alan Greenspan will not increase interest rates when he meets with the Federal Reserve next week.