Glum Growth

While auto sales chipped 0.45 of a percent off 0.7% 17Q1 GDP growth, residential construction added 0.50 a percentage point. Personal spending was surprisingly weak and deserves watching, but should improve. Fortunately, corporate investment boosted GDP by 0.49 of a percent; huge! Elsewhere, volatile government spending was weak and inventories plunged. This data is a reminder that the economy remains in slow growth mode and can’t fire on all cylinders.