Market Review, May 2012

Publication Date: 

May 2012


The second estimate for U.S. first quarter GDP growth was trimmed to 1.9%, lower than the previous estimate of 2.2% and significantly lower than the fourth quarter’s 2.96% growth rate. The increase in real GDP reflected positive contributions from personal consumer expenditure (PCE), residential & non-residential fixed investment and inventory investment. These were partly offset by government spending and net exports. The deceleration in real GDP in the first quarter was due to a decline in inventory investment and non-residential fixed investment and an increase in imports, partly offset by an increase in exports and PCE.