Cross Timbers Business Report, Volume 24, Number 1, Fall 2010 Page: 1
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Cross Timbers Business Report
Published by the College of Business Administration, Tarleton State University
Articles by Members of Delta Mu Delta, William L. Beaty, Faculty Editor
GDP Growth Holds Steady
By: Morgan E. Kuykendall
Real gross domestic product (GDP), the infla-
tion-adjusted value of all final goods and services
produced in the U.S. economy, ended the third
quarter with a 2 percent increase, following a 1.7
rise in the second quarter and a 3.7 percent expan-
sion in the first quarter, according to a recent report
from the U.S. Department of Commerce. This re-
port supports many economists' claims that the
recession that began in December 2007 has finally
come to an end. However, according to The Wall
Street Journal, consumer spending remains well
below levels seen in previous recoveries, and sig-
nificant forces indicate a slow recovery lies ahead.
Consumer spending grew at relatively weak
rates of 1.9, 2.2, and 2.6 percent rates in the first
three quarters of 2010. With the holiday season just
around the corner, a significant rise in spending
does not appear very likely. Many Americans con-
tinue to spend conservatively, as their wealth and
incomes were ravaged by the financial crisis.
Spending and investment by the federal gov-
ernment showed an 8.8 percent increase in the third
quarter, following a 9.1 percent rise in the second
Exports, which increase domestic output, rose
5.0 percent in the third quarter, while imports,
which reduce output, jumped 17.4 percent.
Changes in Real GDP
Annual Percentage Rates
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2008 2009 2010
Source: Bureau of Economic Analysis, U. S. Department of Commerce
The Department of Commerce publishes GDP
data on a quarterly basis. The preliminary estimate
reported here will be subject to two revisions before
it appears in its final form.
Morgan E. Kuykendall, Graduate Assistant for the
College of Business at Tarleton State University,
will graduate with her MS. degree in May 2011.
Inflationary Pressures Remain Weak
By Seth Gaston
According to the Bureau of Labor Statistics, con-
sumer prices in the United States rose in all three
months of the third quarter. This movement offset a
slight deflationary trend reported in the previous
Annualized monthly changes in the consumer price
index, which is the country's most quoted inflation
measure, fell at 0.6, 2.2, and 1.7 percent rates be-
tween April and June. The inflation rate for July
jumped to a 3.9 percent annual figure then declined
to 3.3 and 1.1 percent growth rates in August and
Over the period from September 2009-September
2010, consumer prices rose by 1.2 percent. This fig-
ure reflects a slight gain over the minus 1.3 percent
movement exhibited over the same months in 2008-
Consumer price index changes are reported
monthly and are closely followed by economists as
an inflation indicator. Cost of living adjustments for
many workers and for Social Security recipients are
also based on this index.
Seth Gaston is a sophomore majoring in Mathemat-
ics and Economics at Tarleton State University.
Volume 24, No.1
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Tarleton State University. College of Business Administration. Cross Timbers Business Report, Volume 24, Number 1, Fall 2010, periodical, Autumn 2010; Stephenville, Texas. (texashistory.unt.edu/ark:/67531/metapth284684/m1/1/: accessed November 14, 2018), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting Tarleton State University.