Cross Timbers Business Report, Volume 14, Number 3, Spring 2001 Page: 1
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Cross Timbers Business Report
Published by Students in Free Enterprise of Tarleton State University
Barbara Offor, Editor
Volume 14, No. 3
First Quarter Gross Domestic Product Reveals Improvement
By John McDaniel
The U.S. economy is less likely to fall into reces- The Bureau of Economic Analysis reports that
sion according to the two percent GDP growth rate personal consumption expenditures contributed the
reported in the first quarter. This figure is up from most to the increase in GDP. Consumer spending
the one percent increase posted in 2000's final period. continues to drive this economy despite reports of
Last quarter's growth rate was faster than most ana- consumer confidence declines.
lysts expected. Other factors that aided the increase in GDP were
advances in government spending and investment in
Changes in Real GDP nonresidential and residential structures. Still another
Annual Percentage Rates booster to first-quarter growth was an unexpected fall
in the trade deficit, primarily driven by larger-than-
10 expected decreases in imports.
S .... ... .....Inventories showed no signs of growth for the
first time since 1991 - businesses actually trimmed
S..........inventories by $7.1 billion - an indicator that they are
unloading unsold goods.
=4 . Despite the positive signs behind this quarter's
2A 2.2 .. ..gross domestic product report, analysts are cautious
Z of the economy's strength because of a weakening job
o0 market. Consumer spending will not continue sup-
01 02 Q0 04 Q 1 0 Q 3 Q porting such a growth rate if further job losses occur.
I I 200 i !
Source: Bureau of Economic Anlysi. U. S. Depmat Comme John McDaniel is a sophomore political science ma-
The first quarter of 2001 marks the longest eco- jor at Tarleton State University
nomic expansion on record - ten straight years - and
is the strongest quarter since the third period of 2000.
Texas Unemployment Falls Below National Rate
By Craig Fromme
According to the U.S. Bureau of Labor Statistics,
the Texas economy is doing well in 2001, showing a
March unemployment rate of 4.1 percent compared to
last March's 4.5 percent figure.
With the nation's economy slowing down, an in-
crease in unemployment is occurring. In 2000 the
average jobless rate from January to March was 4
percent. This year's January-March average is 0.2
While the nation's economy slows down, the
Texas economy appears to be doing well. In Decem-
ber of last year, Texas unemployment fell below the
nation's rate for the first time since February 1995.
The Texas average jobless rate for the first three
months of this year falls 0.3 percent below the na-
The increase of jobs in Texas seems to be driven
by the increase of fuel prices, which opens up the job
market for Texans while contributing to economic
stagnation for nation as a whole. The outlook for
Texas unemployment seems to be favorable, so long
as crude oil prices remain strong.
Among Cross Timbers area counties, Erath holds
the lowest first-quarter average at 1.9 percent. This
figure falls 0.3 percent below the value posted for the
same period last year.
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Tarleton State University. Students in Free Enterprise. Cross Timbers Business Report, Volume 14, Number 3, Spring 2001, periodical, Spring 2001; Stephenville, Texas. (texashistory.unt.edu/ark:/67531/metapth298224/m1/1/: accessed March 29, 2017), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting Tarleton State University.