GDP slowed to a 1.8% annualized pace in the first quarter of 2011; this comes after the 4th quarter 3.1% rise in 2010.   Analysts state that this quarters slowing largely due to an increase in imported good, a decline in consumer consumption, a decrease in FED. government spending and a slowing in nonresidential fixed investment and in exports that were partly offset by a sharp upturn in private inventory investment.  Over all inflation increase  1.9% from last quarters 0.4% rise.  However, 1.9% increase in inflation is better than the forecasted 2.2%.

In summary:

Prior Consensus Consensus Range Actual
Real GDP – Q/Q change – SAAR 1.8 % 2.1 % 1.9 % to 2.6 % 1.8 %
GDP price index – Q/Q change – SAAR 1.9 % 1.9 % 1.9 % to 2.0 % 1.9 %

 

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