The Commerce Department made its final revision for the last quarter, and it isn’t good. The only factor that seems to be keeping the U.S. economy afloat is the flooding of dollars by the Federal Reserve. And sooner or later that whale is going to have to be harpooned.
Gross domestic product -- the broadest measure of economic activity -- rose at a mere 1.8% annual pace between January and March, marking a sharp downward revision from the 2.4% pace reported by the Commerce Department last month.The government revises its GDP figures several times, but economists weren't expecting such a dramatic change from the third estimate.
"This was certainly unexpected and, I believe, rare," said Jennifer Lee, senior economist with BMO Capital Markets, referring to the revision.
The weaker figures came primarily from revisions to consumer spending, exports and commercial real estate.
The longer the Obama’s are on vacation, the better off we are.