Personal income in March 2011 rose 0.5%. Nominal personal consumption expenditures (PCE) increased 0.6% and real PCE rose 0.2%. Nominal disposable personal income (DPI) increased 0.6% and real DPI rose 0.1%. The personal saving rate as a percentage of DPI was 5.5% in March.

personal_income_and_outlays_march_2011_2.pdf

Q1 GDP growth came in at 1.8 percent – about what was expected.  So, what does this mean?  Well, 1.8 is less than 3.1 (the growth rate posted in the last quarter of last year) and is less than the rate most think the economy will grow at for the remainder of 2011.  Therefore, Q1 appears to be a little bit of a pothole/air pocket/pause… which begs the questions, what caused this pothole and how concerned should we be?    

Real gross domestic product (GDP) grew at an annual rate of 1.8% in the first quarter of 2011, according to today’s advance estimate. This follows a growth rate of 3.1% in the fourth quarter of 2010.

Gross Domestic Product First Quarter Advance Estimate

Many private-sector forecasters are expecting GDP growth to hit a bit of an air pocket in the first quarter of 2011 before growing at a pace above 3 percent for the remainder of the year.1

• 1. Expectations are from Blue Chip forecast, April 10, 2011.

The February 2011 international trade deficit shrank 2.6%, to $45.8 billion. Exports declined 1.4%, to $165.1 billion. Imports fell 1.7%, to $210.9 billion.

us_international_trade_in_goods_and_services_february_2011.pdf

statement_by_secretary_locke_on_international_trade.pdf