Economy's Expansion in First Quarter Is Revised Higher to 4.4 Percent Rate

http://quote.bloomberg.com/apps/news?pid=10000103&sid=aDu5ZP_dBjzY&refer=news_index

Economy's Expansion in First Quarter Is Revised Higher to 4.4 Percent Rate(less than 4.5% expected)

The U.S. economy grew at a 4.4 percent annual pace from January through March, faster than estimated last month, as businesses replenished inventories, government spending rose and home construction accelerated. Corporate profits over the last year increased by the most in two decades.

The revised reading on gross domestic product, the value of all goods and services produced, compares with the advance estimate of 4.2 percent annual rate issued last month, the Commerce Department said in Washington. Profits, reported for the first time today, jumped 31.6 percent in the 12 months ended in March, the biggest increase since the first quarter of 1984.

Increasing sales and profits have given companies such as Intel Corp. and Texas Instruments Inc. the confidence to ramp up production and boost inventories. A rebound in manufacturing and more investment in new equipment will enable the economy to keep growing for the rest of the year. <snip>

Economists had forecast GDP grew at a 4.5 percent pace last quarter, based on the median of 72 estimates in a Bloomberg News survey. The economy expanded 5 percent during the 12 months ended in March, the most since 1984. <snip>

year at under 4%.

But the future is always a guess.

They keep revising it up...are they artificially inflating it?

And it's a lot, lot less.

Military spending to prop up a staggering economy has long been known as a fool's game.

Even bombs built at home are a use once item - no net gain in infrastructure/wealth at home of any kind - just a debt passed to the next generation.

the money isn't realy there for the consumer!

our media says nothing - not that they are owned by the right wing GOP supporters of Bush, or anything like that.

But I would like the drop in the help wanted index to be mentioned by at least the business media (Down 1 point - April was 38, one point below the reading of 39 in March - year over year change: The index was 37 one year ago. And remember, one year ago was a month after the Iraq invasion - http://www.conference-board.org/economics/helpwanted.cfm )

- plus a bit more note taken of the fact that after-tax corporate profits rose a tepid 1.4 percent in the January-March period, the weakest profit performance since the first quarter of last year, when earnings fell.

And some media might refrain from burying or ignoring the fact the GDP growth was at a faster pace because of inventory building - indeed it caused the upward revision to GDP. Businesses added to stocks at a $28.2 billion annual rate, well above the $15.3 billion pace estimated a month ago.

Good grief, restocking added three-quarters of a percentage point to first-quarter economic growth - and of course government spending was slightly stronger than first reported - and nobody wants to discuss this.

reign!

:eyes: