Bonddad considers reports that Gross Domestic Product last quarter was down at an “annualized” rate of one percent, rather than the 4.5% that was forecast. His conclusions (follow the link for the full analysis):
1.) Government spending really saved the day last quarter — it was the one positive area of growth.
2.) The rate of decline in several important areas occurred at a slower rate. Gross private domestic investment decreased at a far slower rate as did exports and imports.
3.) The rate of decline is more along the lines that occurred in the 4th quarter of 2008 rather than the 1st quarter of 2009.