This year began with a harsh winter, which proved to be highly disruptive to the economy. Gross domestic product (GDP) declined at a 2.1 percent annual rate in the first quarter. But second-quarter GDP growth rebounded to 4.6 percent, according to the most recent estimates.
In the second quarter, the strongest recoveries were in categories that were most directly affected by the first quarter’s severe weather, including investment in equipment, residential structures, inventory accumulation, and exports. Personal consumption, the largest spending sector of the economy, slowed during the first quarter to 1.2 percent.