GDP Expectations Up
GDP expectations have been raised by the prospect of much higher consumption due to the timing of stimulus package, which roughly overlapped the end of tax (return) season.
Consumer spending is a massive input to GDP and may save the figure from slipping below the 1% level due to slowing production and reduced inventories.
Durable Goods (about 15% of GDP) are showing a 0.8% growth rate ex-transports this quarter versus an average -0.5% rate in Q1.
Indeed, GDP estimates have been raised this week with some economists now calling for a 2%-plus growth rate in Q2.