Market Review, August 2011

Publication Date: 

September 2011


S&P downgraded U.S. sovereign credit rating from AAA to AA+ for the first time in history and placed the nation on negative outlook citing a broken political process. Economic data continued to be disappointing. The U.S. economy expanded at a slower pace than previously estimated during the second quarter of 2011. The second quarter real GDP was revised lower from the BEA’s advance estimate of 1.3% to 1.0%, primarily because of downward revisions to net exports and to inventory investment. These were partly offset by upward revisions to business fixed investment and to consumer spending.