BUSINESS SITUATION

Real gross domestic product (GDP) increased 5.3% in the second quarter of 2000, according to the preliminary estimates of the national income and product accounts (NIPA's), after increasing 4.8% in the first quarter. Overall, the picture of the economy in the second quarter presented by the preliminary estimates was similar to that presented by the advance estimates; however, revisions to some of the components of GDP were substantial. The price index for gross domestic purchases increased 2.3% in the second quarter after increasing 3.8% in the first. Gross investment decreased $1.6 billion after increasing $9.9 billion. The downturn was attributable to State and local government gross investment, which decreased $5.7 billion after increasing $13.1 billion, reflecting a downturn in structures.