Grumpy Growth

While Q1 GDP was revised down from +0.2% to -0.7% due to falling exports, rising imports, slower inventory growth, weak corporate spending on plant and intellectual property, and dismal spending on durable goods, residential construction activity was up a healthy 5% from Q4. Only services did significantly better, rising by 7.6%. The economy will not have negative GDP growth in Q2 but won’t expand by more than 2% either.