United States: Q1 GDP Disappoints
28 April, 2011, 21:35. Posted by Zarathustra
Tags: Economy, GDP, United States
The advanced report of the first quarter GDP disappoints. Real GDP grew in the first quarter by an annualised rate of 1.8%, lower than the expected of 2.0% and the 3.1% growth in the fourth quarter of 2011.
Growth in personal consumption slowed to 2.7% from 4.0% in the fourth quarter of last year. Government spending also contributed to the weakness, falling 5.2% in the first quarter vs. the 1.7% fall in the fourth quarter of last year (including 11.7% fall in defence spending). Imports increased by 4.4% vs 12.6% decrease, and exports increased by 4.9% vs. 8.6% increase in the fourth quarter of last year.
Source: BEA
The slowdown was sort of expected, although it came in even worse than the forecast after being revised downward. The Fed yesterday also lowered its full-year forecast to reflect the weakness in the first quarter, although it views the weakness to be transitory.
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About Zarathustra
Zarathustra: Founder and Managing Editor of Also sprach Analyst. Once an analyst, now an investor and entrepreneur. Based in Hong Kong, but Londoner at heart.