Market Review, February 2011

Publication Date: 

February 2011

Summary: 

Real GDP in the U.S. increased at an annual rate of 2.8% in the fourth quarter of 2010, according to the second estimate released by BEA. This is lower than the advance estimate of 3.2% and the consensus of 3.3% as consumers and state and local governments spent less than previously estimated. Growth in consumer spending, which accounts for approximately 70% of GDP, was revised to 4.1% from 4.4%. This is still the fastest rate in four years. Federal spending decreased by 0.2% while state and local spending decreased by 2.4%, as governments try to cut deficits and get the fiscal house in order.