GDP REVISED HIGHER to 3.8%. Let's DIG IN

WHat can I find in there?

Financial corporations reaped about 60% of domestic profits during the quarter !!!!!!

For the current quarter, which ends Thursday, economists now expect growth of 3.4%. The figures will be released on July 29, along with yet more revisions to data for the past three years (that should be interesting)

**Remember the GOV uses adjusted figures along with manipulated HEDONIC pricing.

GDP LED by CONSUMER SPENDING.

Business investment slowed to 4.1% growth, its lowest growth rate in two years. Inventory building added 0.7 percentage points to growth.

INFLATION? The core personal consumption expenditure price index - the Federal Reserve's preferred measure of consumer inflation - increased at a 2% annual rate, close to the top of the Fed's comfort zone

DETAILS ON CONSUMER SPENDING

Details Consumer spending contributed 2.5 percentage points of the 3.8% growth. Spending on nondurable goods increased 5.5%, spending on services gained 3.1% and spending on durable goods increased 1.8%. Consumer spending had increased 4.2% in the fourth quarter

WHAT Business investment?

Business investment contributed 0.4 percentage points to growth. Investments in equipment and software grew 6.1%, a sharp decline from the 18.4% increase in the fourth quarter.

Finally:

Investments in business structures fell 2.4%, the 10th quarter of declines in the past 14 quarters Investments in residences increased 11.5% after a 3.4% gain in the fourth quarter. Homebuilding added 0.6 percentage points to growth Exports increased 8.9%, while imports grew 9.6% Inventories grew by $66.8 billion after growing $47.2 billion in the fourth quarter.

**Growing inventories is something to watch, financial companies make up over 60% of corp profits.

Our economy IS HOME BUILDING, but now 70% already own. THE FALL FROM GRACE will be of EPIC proportions!

Duratek