US Economy Grows 2.8% in Last Quarter of 2011
Data from the Bureau of Economic Analysis Friday showed GDP for the fourth quarter of 2011 grew by 2.8 percent after only growing by 1.8 percent in the previous quarter. Economists had been expecting a 3.0 percent rise in quarterly growth.
A lack of job stability and economic uncertainty continues to sit heavy on people’s willingness to make outlandish purchases. Consumer spending, which makes up about 70 percent of the economy, grew 2 percent, worse than the 2.4 percent expected by the Street. Prices related to consumer spending rose 0.7 percent. Government agencies are also cutting back as President Obama looks to reduce the nation’s budget deficit. Government spending experienced its biggest decline since 1971 as it fell 2.1 percent.
Two revisions to this initial GDP will be given over the next few months.
Over the course of 2011, the U.S.’s economy experienced a growth of 1.7 percent, almost half of last year’s 3 percent growth.
Futures began to sell-off following the report and weakness continued after the opening bell. The Dow Jones is down 41 points, the S&P is down 2.5 and the Nasdaq is showing resiliency, up 0.5.
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A lack of job stability and economic uncertainty continues to sit heavy on people’s willingness to make outlandish purchases. Consumer spending, which makes up about 70 percent of the economy, grew 2 percent, worse than the 2.4 percent expected by the Street. Prices related to consumer spending rose 0.7 percent. Government agencies are also cutting back as President Obama looks to reduce the nation’s budget deficit. Government spending experienced its biggest decline since 1971 as it fell 2.1 percent.
Two revisions to this initial GDP will be given over the next few months.
Over the course of 2011, the U.S.’s economy experienced a growth of 1.7 percent, almost half of last year’s 3 percent growth.
Futures began to sell-off following the report and weakness continued after the opening bell. The Dow Jones is down 41 points, the S&P is down 2.5 and the Nasdaq is showing resiliency, up 0.5.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
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