NOVEMBER 2004

More Signs of Stronger Growth

The U.S. Bureau of Economic Analysis (BEA) announced that gross domestic product (GDP) grew at a seasonally-adjusted annual rate of 3.7% during the third quarter of 2004. Consumer spending and business investment were key drivers, an encouraging sign for continued growth. The economy has now expanded for 12 consecutive quarters.

Highlights of the BEA report include the following.

• Consumer spending in the third quarter increased by 4.6%. Business investment increased by 11.7%.

• Business investment has increased for 6 consecutive quarters

• Inflationary pressures remain relatively low, despite rising oil prices. The personal consumption deflator, which is used by the Federal Reserve as a primary measure of inflation, increased at an annual rate of 1.1% during the third quarter.