The weak showing masks widely divergent performance among the GDP components. Consumer spending continues to grow, with real personal consumption expenditures rising a strong 4.2 percent. On a year-over-year basis, real personal consumption spending accelerated to 2.7 percent from 2.4 percent in the first quarter. This contrasts starkly with business investment, which declined on a year-over-year basis for the second quarter in a row (Chart 1). Government spending and inventory liquidation also dragged down growth. We expect the current pattern of consumer-led growth to continue. The weakness in business investment may be laying the foundation for a surprise uptick in real GDP growth in the second half.