Market Review, April 2011

Publication Date: 

April 2011


The 2011 first quarter Real GDP in the U.S. increased at an annual rate of 1.8% after a 3.1% rise in the previous quarter according to the advance estimates from BEA. The weakened growth rate is primarily attributed to higher food and energy prices along with adverse weather during the first two months of the quarter. Personal consumption expenditure, which accounts for 70% of the output, increased 2.7% in the first quarter vs. 4.0% during the fourth quarter. A larger decrease in federal, state and local government spending, decelerations in nonresidential fixed investment and exports coupled with an increase in imports all contributed to the slowdown in Real GDP numbers during the first quarter.