Economic Watch: GDP Growth Improves Just Slightly
U.S. economic growth improved more than previous estimates, but not by much, according to Commerce Department figures released Tuesday. Stronger net exports and business investment offset an unexpected downward revision to consumer spending.


U.S. economic growth improved more than previous estimates, but not by much, according to the latest GDP figures reelases by the Commerce Department June 28. Stronger net exports and business investment offset an unexpected downward revision to consumer spending.
The 1.1% annual increase in the gross domestic product compares to a 0.8% estimated rate a month ago and 0.5% estimated in April. The latest figure is also better than a consensus estimate of Wall Street analysts that was forecasting a 1% increase in the nation’s total output of goods and services.
Despite the upward revisions, this latest GDP rate is down from its 1.4% pace in the final quarter of 2015, following rates of 2% and 3.9% in the third and second quarters of last year. However, it's better than the first quarter 2015 rate of 0.6%.
Consumer spending growth was revised down to 1.5% from 1.9% previously. According to RBC Economics, the latest figure continues a pattern of weak consumer spending in the first quarter of each of the last three years, which may reflect measurement issues rather than an underlying slowdown in spending. RBC believes consumer spending is poised to rebound to a 3.5% pace in the second quarter.
The report also revised exports higher, with net trade adding growth to the overall GDP figure rather than being a drag as it was previously, marking the first positive contribution from net trade since the second quarter of last year.
“With today’s upward revision to the first quarter GDP and evidence in hand of a consumer-led rebound in second quarter, we expect growth averaged a near-trend 2% annualized pace in the first half of 2016,” said RBC Economist Josh Nye. “Recent payroll figures have raised questions about the durability of consumer spending, but we expect the slowdown is overstated and look for job growth to rebound in June before settling at a pace of around 125,000 per month in the second half of 2016."
He cautions there is potential for Brexit-related global uncertainty to weigh on already-soft business investment, while exports could be hampered by renewed strength in the U.S. dollar. “However, a solid domestic backdrop and supportive monetary policy are expected to prevent the first quarter slowdown from continuing going forward.”
According to Reuters, last week Federal Reserve Chair Janet Yellen noted second quarter economic growth has so far indicated a “noticeable step-up,” with the Atlanta Federal Reserve forecasting second quarter GDP growth of 2.6%.
More Fleet Management

What Geotab's New AI Connector Means for Fleets
Fleets can now ask their usual AI assistants questions about maintenance, safety, fuel use, and vehicle performance, using their live Geotab data, and take action on the answers without leaving their preferred AI tool.
Read More →
New C.H. Robinson Tool Opens Door to More Predictable Freight
BidBoardX lets carriers search, bid on, and secure committed freight opportunities through a single digital marketplace.
Read More →
New York City's Microhub Project is Delivering Results
Trucking, last-mile delivery companies, and environmental advocates like what they are seeing so far with New York's microhub program.
Read More →
Why Truck Detention Keeps Costing Fleets Time and Money
A 2024 ATRI study found detention affects nearly 40% of truckload stops and costs the industry more than $15 billion annually. Despite the toll on drivers, fleets, and supply chains, the problem remains stubbornly persistent.
Read More →
Time is Running Out to Apply for Exclusive HDT Event
Heavy Duty Trucking Exchange brings fleet managers and suppliers together for the deeper conversations that lead to ideas, partnerships, and solutions. Time is running out to apply for the September event.
Read More →
Amazon Launches Less-Than-Truckload Freight Offering for All Businesses
This launch is the latest addition to Amazon Supply Chain Services, a portfolio of supply chain capabilities from Amazon, including freight, distribution, fulfillment, and parcel shipping.
Read More →
Import Cargo Volume to See Year-Over-Year Gain Again in June, Then Remain Below 2025 Levels Into Fall
After July, the report predicts a weakening in import volume as consumer uncertainty remains high and the impact of increasing inflation takes its toll.
Read More →
AUCTION OF EQUITY INTEREST IN HEAVY HAUL TRUCKING COMPANY!!
Mark your calendar: June 30, 2026 (10:00 a.m. PDT). A 37.5% ownership interest in MagnaTrans, LLC, a California limited liability company doing business as Magna Transportation Group, will be sold in an in-person and online auction to the highest bidder or bidders under Article 9 of the Uniform Commercial Code. The Rancho Cucamonga-based heavy haul and over-dimensional trucking company operates across California, Oregon, and Arizona.
Read More →
Volvo Trucks Adds Unattended Over-the-Air Software Update Capabilities
The latest evolution of Volvo’s over-the-air update technology allows software updates to run while trucks are parked, helping fleets keep vehicles current without disrupting operations.
Read More →How Waste Connections is Using Data, Telematics, and AI
How do you manage and maintain more than 18,000 connected trucks? Data. Lots of it.
Read More →

