Economy grew 2.5% in past four quarters

According to the economic definition of “recession,” the U.S. is not in a recession.

Economic data from the U.S. Treasury Department show that the economy grew 2.5 percent over the past four quarters, including 0.6 percent in the fourth quarter of 2007 and the first quarter of 2008.

Most areas of the private-sector economy grew in the first quarter, including exports (annual rate of 5.5 percent), imports (2.5 percent) and consumption (1 percent). Federal government spending grew by 4.6 percent, and state and local government spending grew by 0.6 percent.

The biggest drop in real gross domestic product in the first quarter of 2008 was in residential construction, down 26.6 percent, followed by business structures, down 6.2 percent.

Productivity increased at an annual rate of 4.1 percent in manufacturing and 2.2 percent in nonfarm business.

Unit nonfarm labor costs increased 2.2 percent, hourly nonfarm compensation increased 4.4 percent, and the civilian Employment Cost Index increased 3 percent.

The personal saving rate was 0.4 percent in the first quarter and in the past four quarters.

In April, the unemployment rate dropped slightly from 5.1 percent in March to 5 percent, although total nonfarm payrolls dropped by 20,000.

The April Consumer Price Index increased 0.2 percent from March, and the annual year-to-date inflation rate is 3 percent.

Industrial production decreased 0.7 percent in April, with manufacturing production decreasing 0.8 percent.