US economy grows less than 2 percent(Read article summary)
US economic growth was unchanged in the government's revised GDP estimate. Government spending, especially on defense, declined.
Today, the Bureau of Economic Analysis (BEA) released their second "estimate" of the Q1 2011 GDP report showing that the economy continued to expand with real GDP increasing at an annualized rate of 1.8% from Q4 2010.
On a year-over-year basis real GDP increased 2.31% while the quarter-to-quarter non-annualized percent change was 0.46%.
The latest report reveals a notable decline in non-residential fixed investment with non-residential structures declining at a rate of 16.8% from the fourth quarter 2010 while residential fixed investment also declined falling at a rate of 3.3% over the same period.
Note that the BEA has yet to take down their estimates for Q2 residential fixed investment which still sits at the lofty level of a supposed 25.7% quarter-to-quarter change... not likely.... look for that figure to be revised down in coming releases impacting the anemic "final" Q2 2010 results.
Government spending declined notably with the national defense component declining at a rate of 11.7% from the fourth quarter 2010 while in total government expenditures shaved 1.07% from overall GDP.
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