Extensive Growth of Real Gross Domestic Product in the U.S Case Study

Extensive Growth of Real Gross Domestic Product in the U.S - Case Study Example The accelerated growth during the spring and summer period is an indicator that the economy has reached a stronger sustained growth point. In addition, this growth is the best reported after five years since the end of the Great Recession of the U.S. Gross domestic product considers the value of all goods and services produced by the U.S and the best measure of the economic health of the nation. Increase in consumer’s expenditure, investments in business equipment and the increase in the inventories were reported to be higher than the formers estimates. Therefore, the increased investments, inventories, and consumer expenditure accounted for the upward growth in the third quarter of the year 2014 (Market Watch, 2014). The surprising growth in the U.S economy resulted in a slight lift to the stock market. Actually, most of the economists polled by the MarketWatch expected the government to report a decreased growth of around 3.3 percent from the previous. Increase in consumer e xpenditure or spending reflecting more than two-thirds of economic activity of the U.S increased to 2.2 percent from the first read that was 1.8 percent. Households spent more money at retail stores and on auto fuels than in the previous report. One major source of the extensive growth was the increased investment in business equipment which rose from 7.2 percent to 10.7 percent. Companies’ inventories rose from $62.8 billion to $79.1 billion. Despite the fact that the overall growth was high in the third quarter, growth in exports reduced from 7.8 percent to 4.9 percent. The decline shows that the light growth in Asia and Europe is taking a part of the U.S economy. Imports of the U.S reduced at 0.7 percent annual rate a compared to the estimated growth of 1.7 percent.