For Immediate Release: Friday, July 30, 2010
Contact: Phoebe Silag or Karen Conner, news@epi.org 202-775-8810

The Department of Commerce reported today that gross domestic product (GDP)—the value of all final goods and services produced in the United States—rose at an annualized rate of 2.4% in the second quarter of 2010. This is a steep drop off from the 3.7% annualized growth rate in the previous quarter.

The sharp deceleration in growth was driven primarily by a rapid rise in imports (which are a subtraction to GDP). Net exports shaved 2.8% off of the quarter’s annualized growth rate, the largest bite lopsided trade flows has taken out of growth in a quarter since 1982. A deceleration in the rate of inventory accumulation and slightly slower growth in consumer spending also contributed to the slowdown in growth this quarter. CLICK HERE for complete GDP Picture.