Q1 GDP Takes Sharp Negative Revision on Consumer Spending

The drags were downward revisions in consumer spending and in business investment, with personal consumption spending falling to a revised 2.6% gain rather than a 3.4% gain. We also saw that exports and imports were revised slightly lower.

Real federal government consumption expenditures and gross investment fell 8.7% in the first quarter versus a decrease of 14.8% in the fourth. Current-dollar GDP is the market value of output of goods and services and this rose by 3.1% or $120.0 billion in the first quarter to a level of $15.9841 trillion.

What will not be well received is that growth is looking weak in the second quarter as well, and the international picture seems to be turning south again too. The good news is that this marked the 15th consecutive quarter of gains. The bad news is that this is the weakest recovery since the end of World War II.

S&P futures remain up about eight points and DJIA futures remain up almost 60 points.