At the halfway point of 2004, the U.S. economy appears to be doing well. Employment growth is strengthening. Output is growing, and inflation appears to be quite tame. The housing market, however, is in the midst of a minor slowdown.
The preliminary report released by the Department of Commerce shows that real gross domestic product (GDP) grew by 3.9 percent. This is the third quarter of above-trend growth that has led to an improvement in the labor market.