Market Review, April 2012

Publication Date: 

April 2012


Despite the mild winter, U.S. first quarter GDP came in at a 2.2% annualized growth rate, down from the 3.0% pace in the fourth quarter of last year and below the consensus of 2.5%. This has reignited debates about the sustainability of the recovery and the possibility of further Fed intervention. While the buildup of Inventories (blue bar in the chart below) was the primary reason behind GDP growth in the fourth quarter, Personal Consumption Expenditure (red bar) fueled the growth in the first quarter. Inventories and Housing also contributed positively to the GDP growth in the first quarter.