The Bureau of Economic Analysis released the preliminary GDP numbers today updating last month's advance figures. GPD grew by an annual rate of 0.898% in the first quarter over the fourth quarter of 2007, up from the previously announced rate of 0.596%. This upward revision was in line with economist's expectations. Total GDP for the first quarter was at $11.7019 trillion. This was $8.8 billion higher than estimated last month. Personal Consumption Expenditures were $0.6 billion higher than previously estimated, Gross private domestic investment was $8.7 billion lower, and Government spending was $0.2 billion lower. This was offset by an improvement of $15.7 billion in the trade deficit. Exports were $9.7 billion less than previously estimated, but this was offset by a bigger decrease of $25.4 billion in imports.
Adjusted for population growth and inflation, GDP grew by 0.05% last quarter. That is about as close to zero as you can get. Bloomberg had a perfect quote from Jeffery Frankel, an economist at Harvard University who is a member of the NBER panel that dates U.S. economic cycles:
It's basically like an airplane at stall speed, just skimming above the water, I wouldn't rule out going into a recession later in the year.
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