Wednesday, May 25, 2011
GDP unrevised at 0.5%
Posted by David Smith at 11:00 AM
Category: Thoughts and responses

The second estimate of GDP for the first quarter would only have been revised if there had been new news on the production side. As it was, a downward revision of non-manufacturing industrial production was offset by an upward revision of construction data (which still look strange at 4% down on the quarter) to leave the quarterly GDP rise unchanged at 0.5%.

On the expenditure side, household spending is very weak - down on a year earlier - while net exports and investment are making a contribution to growth (although investment in the latest quarter suffered a construction-related plunge). The growth on the quarter in manufacuring, 1.1%. and services, 0.9%, still points to a better rate of growth than 0.5%. More here.