US Q1Real GDP Growth - April 26, 2013

The US economy grew 2.5 per cent in the first quarter of 2013, falling short of consensus expectations of 3 per cent. Most of the shortfall in growth was the result of an 11.5 per cent drop in defense spending, which led US government spending lower for the tenth time in the past eleven quarters.  On the positive side, consumer spending posted its largest increase in two years, expanding 3.2 per cent.  

It is worth noting that today's release is a preliminary estimate and will be revised in subsequent months. The recent trend has been upward revisions and so it is likely that the US economy actually grew at a slightly faster pace than initially estimated. That said, we do expect some weakness in the second and third quarter of this year due to further declines in government spending. However, that weakness should give way to stronger growth later in 2013 and into 2014 when we forecast the US economy will grow at a rate of above 3 per cent.

For more information, please contact: 

Cameron Muir Brendon Ogmundson
Chief Economist Economist
Direct: 604.742.2780 Direct: 604.742.2796
Mobile: 778.229.1884 Mobile: 604.505.6793
Email: cmuir@bcrea.bc.ca Email: bogmundson@bcrea.bc.ca

BCREA represents 11 member real estate boards and their approximately 18,000 REALTORS® on all provincial issues, providing an extensive communications network, standard forms, economic research and analysis, government relations, applied practice courses and continuing professional education (cpe).

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