Growth in the Gross Domestic Product (GDP) fell to 2.2 percent in the first quarter of 2012, according to the Bureau of Economic Analysis' latest report. GDP had increased at a 3.0 percent annualized rate in the fourth quarter of 2011 and 1.8 percent in the quarter before that, but an across-the-board fall in government consumption and investment subtracted 0.60 percentage points from overall economic growth.
The weak growth in GDP combined with weak job growth makes it clear the economy is not performing especially well. The economy should be capable of higher-than-normal growth coming out of a deep recession. From recent lows, there may be an increase in the pace of nonresidential investment. However, with the recent good weather providing a temporary boost to both consumption and investment and continued drag in the public sector, there is not much promise for sustained growth in the immediate future.
For a more in-depth analysis, see the latest GDP Byte.