Thursday, May 29, 2008

U.S. first quarter GDP revised higher to 0.9 percent

Weak points:
Consumer spending (durables and non durables down, services holding up for now)
Government expenditures on the State and local level (rising inflation and lower revenue squeeze purchasing power) and of course,
residential domestic investment (no signs of recovery there)

Merryl Lynch North American economist David Rosenberg notes that a key indicator of the domestic economy, final sales to domestic purchasers (GDP ex trade and inventories), remains negative at -0.1% QoQ (was -0.4%).

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