ETC Economic Trends and Conditions: May 2011 Edition

Author(s): Federal Reserve Bank of San Francisco: Economic Research for the Division of Banking Supervision and Regulation

Although recent economic news has been disappointing, much of the first-quarter weakness appears to reflect transitory factors, including harsh winter weather at the start of the year. The underlying pace of economic recovery appears intact and we expect real GDP to increase 3½ to 4% over the next year.