Consumer spending, according to NAB’s transaction data, went up 0.5% in both retail and total spending after being broadly flat last month.
Report
April 30, 2012
US GDP – Q1 2012
US GDP grew by 0.5% (or 2.2% annualized) in the March quarter, confirming that the US economy is growing at a modest-to-moderate pace. There was mixed news on the composition of GDP with inventories making a further contribution to growth and business investment declining. However, consumption and housing investment were strong and there was a […]
- US GDP grew by 0.5% (or 2.2% annualized) in the March quarter, confirming that the US economy is growing at a modest-to-moderate pace.
- There was mixed news on the composition of GDP with inventories making a further contribution to growth and business investment declining. However, consumption and housing investment were strong and there was a small improvement in net exports.
- We have left our forecasts for US growth unchanged at 2.3% in 2012 and 3.1% in 2013. In 2012, we expect GDP in the current quarter to grow at a similar rate to the March quarter and then strengthen in the second half of the year.
- Implications for monetary policy broadly neutral. Recent FOMC economic projections signalled a reduced chance of further monetary policy but a key will be labour market performance in the months ahead.
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