September 12, 2012
LIA Annual Business Fact Book 2012
By: Dr. Pearl M. Kamer, LIA Chief Economist
The Long Island Association Annual Business Fact Book 2012
by LIA Chief Economist Dr. Pearl Kamer
A comprehensive guide to business and public sector activity on Long Island
The U.S. economic recovery continues to face strong headwinds. In the first two years of the recovery, real GDP grew at annual rates of 2.4%and 1.8% respectively. First quarter 2012 GDP grew at an annual rate of 2.0% but growth slowed to only 1.5% in the second quarter. Increases in residential fixed investment and business purchases of equipment and software supported second quarter growth. Weaker consumer spending and reductions in government spending contributed to slower GDP growth in the second quarter.
The U.S. consumer inflation rate was 3.1% in 2011when compared with the 2010 rate of 1.7%. There were major increases in food and energy costs in 2011. Inflation has since abated due to declining energy costs.