Crucial decisions within the government, businesses and among individuals rely on economic statistics released by the Bureau of Economic Analysis (BEA). Reports from the bureau’s website reflect the status of the United State’s economy based on the output of goods and services. In the first quarter of 2011, the growth of the United Sates’ GDP slowed down from a 2.4 percent rate posted in the fourth quarter of 2010. An evaluation of key economic indicators illustrates that slowed retail trade and manufacturing contributed to the deceleration. Increased economic growth in the second quarter of 2011 resulted due to increased productivity in sectors such as manufacturing and service industry as depicted by increase in consumer spending and exports. In the third quarter of 2011, GDP growth declined because of the decline in inventory investment and a substantial increase in imports (Aghion & Durlauf, 2005). This trend is attributable to changes in consumer spending. In the fourth quarter of 2011, GDP growth increased considerably because of positive inputs from net exports and investments, which are central in revenue generation and acceleration of economy.
The first and second quarters of 2012 witnessed a decline in GDP growth, which largely resulted due to decline in consumer expenditures and federal spending. GDP growth increased in the second quarter due to increased consumer expenditure and investment. In the remaining part of 2012, GDP growth is likely to slow down as consumers embark on restrained spending as they anticipate increase in inflation and decline in job growth.
Data on GDP growth provides business owners with insights on the economic stability of a country. Analyzing the GDP trend within country highlights the economic viability of investments within that country. Inconsistent fluctuations characterized by large gaps between economic acceleration and deceleration present high investment risks. In addition, GDP data enables business owner to identify economic cycles that pose threats and establish relevant safeguards.