August 2014 Macro Pulse -- Still a Two Percent Growth Economy

That was American Action Forum President Douglas Holtz-Eakin’s reaction to the news that 2Q2014 real gross domestic product (GDP) grew at a seasonally adjusted and annualized rate (SAAR) of 4.0 percent. Holtz-Eakin’s assessment stemmed from the observation that, although the 4 percent headline growth rate represented the largest positive quarter-to-quarter GDP change in nearly 14 years, inventory accumulation accounted for nearly half of the increase. Because inventories are so volatile, the Bureau of Economic Analysis removes them from real final sales of domestic product, its “bottom-line” indicator of economic activity. By that measure, the U.S. economy grew at a much more modest 2.3 percent.

Given the unexpectedly robust GDP reading, what does the latest data indicate about how the forest products sector is faring? Find out by clicking here to read the rest of the August 2014 Macro Pulse recap.

The Macro Pulse blog is a commentary about recent economic developments affecting the forest products industry. The monthly Macro Pulse newsletter summarizes the previous 30 days of commentary available on this website.