GDP Increased at Annual Rate of 3% in Fourth Quarter of 2011

US GDP increased at an annual rate of 3% according to the BEA’s 2nd 4th quarter GDP estimate. Nominal GDP is at $15.3 trillion and real GDP is at $13.4 trillion. Contributing to the increase is a rise in gross private domestic investment, personal consumption expenditures, and state and local gross investment. The rise was mitigated by an increased trade deficit and less federal spending both defense and non-defense. It appears that, at least for now, the private sector is capable of offsetting relatively flat federal spending.

For more information, see our GDP report.

–From the St. Louis Federal Reserve and the Bureau of Economic Analysis

4th Quarter 2011 GDP Increased 2.8% at Annualized Rate

4th quarter 2011 real GDP increased at an annual rate of 2.8%. This comes from an increase in private investments and a decrease in federal, state, and local spending along with an increased trade deficit. In other words, private spending is up, government spending is down, and imports are up. Real GDP increased $90.8 billion to $13.4 trillion and nominal GDP increased $118.2 billion to  $15.3 trillion. For more information, see our GDP Report.

–From the St. Louis Federal Reserve and the Bureau of Economic Analysis