Dan’s Biz Bookshelf: Four Important Books You Need to Read (Not Just Say You Have)
The Marketing Minute: Cracking the Code of Technical Marketing
U.S. 2Q GDP Well Below Expectations
July 29, 2016 | The Conference BoardEstimated reading time: 1 minute
The U.S. Bureau of Economic Analysis today reported 1.2 percent annualized growth in real Gross Domestic Product for the second quarter of 2016. This is the third quarter in a row that growth is close to one percent, showing that the growth trend of the American economy seems on a path of dropping off significantly from its assumed 2 percent growth trend.
Second quarter growth came in well below expectations and provides more evidence that the economy has weakened so far this year. The economy continues to operate at two speeds, with businesses feeling some uneasiness while consumers remain buoyant. Businesses, though, continue to show more wariness about the strength of the economy which is reflected in the largest quarterly drop in non-residential investment numbers since the beginning of the expansion. There are several factors driving this deteriorating investment environment. Aggregate corporate profits have been declining since the end of 2014 as a combination of weak inflation and rising wages have narrowed margins. Brexit and market volatility related to a perception of increased geopolitical risk may cause businesses to delay some elective investment despite low borrowing costs.
In contrast, personal consumption continues to grow at a strong pace. A tight labor market has produced steady wage growth and boosted consumption. Though residential investment declined sharply this quarter, its general trend remains positive as low mortgage rates have kept the housing market strong. Trade was also a bright spot as a strong dollar did not dent export growth this quarter. The divergence between consumer and business behavior will persist in the second half of the year with growth likely remaining below 2 percent.
Though the price index for Personal Consumption Expenditures rose nearer to the Federal Reserve’s 2 percent target, today’s report means that a rate hike before the end of the year is unlikely unless growth strengthens considerably in the coming months.
Share on:
Testimonial
"In a year when every marketing dollar mattered, I chose to keep I-Connect007 in our 2025 plan. Their commitment to high-quality, insightful content aligns with Koh Young’s values and helps readers navigate a changing industry. "
Brent Fischthal - Koh YoungSuggested Items
LPKF Strengthens Structural Resilience: 'North Star' Initiative Aims to Secure Long-term Profitability
09/16/2025 | LPKFLPKF Laser & Electronics SE has launched the "North Star" initiative, a far-reaching package of measures designed to strengthen the company's long-term profitability.
The Marketing Minute: Cracking the Code of Technical Marketing
09/17/2025 | Brittany Martin -- Column: The Marketing MinuteMarketing is never a one-size-fits-all endeavor, but the challenges are magnified for highly technical industries like electronics. Products and processes are complex, audiences are diverse, and the stakes are high, especially when your customers are engineers, decision-makers, and global partners who depend on your expertise.
Beyond the Board: What Companies Need to Know Before Entering the MilAero PCB Market
09/16/2025 | Jesse Vaughan -- Column: Beyond the BoardThe MilAero electronics supply chain offers opportunities for manufacturers that are both prestigious and strategically important. Serving prime contractors and Tier-1 suppliers can mean long-term program stability and the satisfaction of contributing to national security. At the same time, this sector is unlike commercial electronics in almost every respect. Success requires more than technical capabilities, it requires patience, preparation, attention to detail, and a clear understanding of how the business model differs.
Global Interposer Market to Surge Nearly Fivefold by 2034
09/15/2025 | I-Connect007 Editorial TeamRevenue for the global interposer market is projected to climb from $471 million in 2025 to more than $2.3 billion by 2034, according to a new report from Business Research Insights. The growth represents a CAGR of nearly 20 percent over the forecast period.
Indium Promotes Huang to Senior Manager, Marketing Communications
08/28/2025 | Indium CorporationWith its commitment to innovation and growth through employee development, Indium Corporation announces the promotion of Jingya Huang to Senior Manager, Marketing Communications, to continue to lead the company’s branding and promotional efforts.