Final revised 1st quarter growth at 1.9%

Some indices tumbled markedly, including export growth revised down from 7.2% to 4.2% while consumer spending fell from 2.7% to 2.5%. But the 1.9% growth in GDP remains unchanged from the last revision. Reuters: Excluding inventories, the economy grew at a revised 1.8 percent rate in the first quarter, rather than 1.7 percent and up from 1.1 percent in the fourth quarter. Exports grew at a 4.2 percent rate instead of 7.2 percent. While the careful of management of inventories could be a boost to second-quarter growth, the mild downward revision to consumer spending underscores the loss of momentum in the economy that has been evident in weak hiring and slowing factory activity. Second-quarter growth is forecast around 2 percent, but with global demand cooling amid Europe's debt woes and an uncertain fiscal policy path at home forcing households to be cautious, even that estimate might be too optimistic. Business spending on equipment and software was revised down to show...(Read Full Post)