GDP growth revised to 0.7%

[Roland99]

Source: Marketwatch

Growth, inflation revised higher in 1st quarter
Core consumer prices rose at 2.3% pace in past year
http://www.marketwatch.com/news/story/growth-inflation-revised-higher-1st/story.aspx?guid=%7BAF34BA5E%2DF1D2%2D48D5%2DA99D%2D2F8D7E2C24E9%7D

WASHINGTON (MarketWatch) - U.S. economic growth in the first quarter was a little bit stronger than previously believed, but so was inflation, the Commerce Department reported Thursday.

The U.S. economy grew at a 0.7% real annual pace in the first three months of the year, the slowest pace in four years, compared with the 0.6% estimate reported last month. Final sales increased 1.7% annualized, a tenth better than last month's estimate.

Core consumer prices rose at a 2.4% annual pace in the quarter, revised up from a 2.2% pace previously reported. Core prices - which exclude food and energy -- are up 2.3% in the past year, revised up from 2.2% earlier. The upward revision was due to higher physician services prices.

The revision puts core inflation further above the Federal Reserve's unofficial target range of 1% to 2% as of the end of March. The earlier figures had core inflation falling to 2% at the end of April, leading some analysts to suggest that the Fed could lessen its alert level on inflation slightly in its announcement later Thursday.

Read more: http://www.marketwatch.com/news/story/growth-inflation-revised-higher-1st/story.aspx?guid=%7BAF34BA5E%2DF1D2%2D48D5%2DA99D%2D2F8D7E2C24E9%7D

[roamer65]

1. The Fed is now hamstrung.

I expect Bernanke will stall as long as he can and not change interest rates. It will just postpone the "day of reckoning".

[Barrett808]

2. 0.7% is still a growth recession

Q2 numbers should be interesting.

[David__77]

3. Wow...

At this rate, it won't even be a decade before China overtakes the US as the world's largest economy, if we use GDP(PPP) as our standard of wealth, as we should.