Page 32 - TrailerTalk August 2024

TRAILERTALK

Gross Domestic Product, Second Quarter 2024 (Advance Estimate)

Real gross domestic product (GDP) increased at an annual rate of 2.8% in the second quarter of 2024, according to the
“advance” estimate released by the U.S. Bureau of Economic Analysis. In the first quarter, real GDP increased 1.4%.

The GDP estimate is based on source data that are incomplete or subject to further revision by the source agency. The
“second” estimate for the second quarter, based on more complete source data, will be released on Aug. 29, 2024.

The increase in real GDP primarily reflected increases in consumer spending, private inventory investment, and nonresidential
fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.

The increase in consumer spending reflected increases in both services and goods. Within services, the leading contributors
were health care, housing and utilities, and recreation services. Within goods, the leading contributors were motor vehicles
and parts, recreational goods and vehicles, furnishings and durable household equipment, and gasoline and other energy
goods. The increase in private inventory investment primarily reflected increases in wholesale trade and retail trade industries
that were partly offset by a decrease in mining, utilities, and construction industries. Within nonresidential fixed investment,
increases in equipment and intellectual property products were partly offset by a decrease in structures. The increase in
imports was led by capital goods, excluding automotive.

Forecasters Predict Higher Near-Term DURABLE GOODS
Growth and Job Gains

The near-term outlook for the U.S. economy looks better now than UP FIVE OF LAST SIX
it did three months ago, according to 34 forecasters surveyed by MONTHS
the Federal Reserve Bank of Philadelphia. The forecasters predict the
economy will expand at an annual rate of 2.1% this quarter and 2.0%
next quarter, up from the predictions of 1.5% in the last survey. On an
annual-average over annual-average basis, the forecasters expect real
GDP to grow at an annual rate of 2.5% in 2024 and 1.9% in 2025. These
annual projections are 0.1 percentage point higher than the previous
estimates of three months ago.

Existing Home Sales up 1.3 Percent in
July

• Existing-home sales grew 1.3% in July to a seasonally adjusted
annual rate of 3.95 million, stopping a four-month sales decline
that began in March. However, sales slipped 2.5% from one year New orders for manufactured durable goods in July,
ago. up five of the last six months, increased $26.1 billion
• The median existing-home sales price elevated 4.2% from July or 9.9% to $289.6 billion, the U.S. Census Bureau
2023 to $422,600, the 13th consecutive month of year-over-year announced. This followed a 6.9% June decrease.
price gains. Excluding transportation, new orders decreased
• The inventory of unsold existing homes edged higher by 0.8% 0.2%.
from the prior month to 1.33 million at the end of July, or the
equivalent of 4.0 months’ supply at the current monthly sales Excluding defense, new orders increased 10.4%.
pace. Transportation equipment, up two of the last three
• According to Freddie Mac, the 30-year fixed-rate mortgage(link months, drove the increase, $26.4 billion or 34.8%
is external) averaged 6.49% as of Aug. 15, 2024. That’s up from to $102.2 billion.
6.47% one week ago but down from 7.09% one year ago.

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