US economic growth disappoints, holding steady at 1.8 percent

{mosads}Personal consumer spending lagged in the first quarter when compared to the fourth quarter of 2010. It increased just 2.2 percent in the beginning of the year, compared to a 4 percent boost at the end of 2010.

Nonresidential fixed investment growth also lagged in the beginning of 2011. While that category grew 7.7 percent in the fourth quarter of 2010, it increased just 3.4 percent in the first three months of 2011.

Federal government spending was down 7.9 percent in the first quarter, compared to an 0.3 percent decrease in the fourth quarter. Cuts in national defense spending constituted the bulk of that decline, as it fell 11.7 percent in the beginning of the year; it fell just 2.2 percent in the fourth quarter. Non-defense government spending was up slightly in the first quarter, growing 0.1 percent. However, that still lagged behind fourth-quarter numbers, as non-defense spending grew 3.7 percent then.

State and local government spending also continued to decline, falling 3.2 percent in the first quarter, compared to a 2.6 percent decrease at the end of 2010.

However, exports of goods and services were gaining steam, as they increased 9.2 percent in the first quarter, up from an 8.6 percent increase in the fourth quarter.