Market Review, January 2011

Publication Date: 

January 2011


The U.S. economy picked up steam towards the end of 2010 as U.S. consumers increased spending and U.S. companies increased their net exports. The real gross domestic product of the U.S. grew at an annual pace of 3.2% during the fourth quarter, according to the initial estimate. U.S. consumer spending (red bar in figure 1), which accounts for about 70% of GDP, grew at 4.4%, the biggest increase since the beginning of 2006. This contributed 3% to GDP. A sharp decrease in imports and an increase in exports resulted in net exports (green bar) contributing 3.4% to real GDP.