Q1 2010 GDP Revised to 2.7% from 3.00%...swing and a miss

Bureau of Economic Analysis (BEA) Press Release:

Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 2.7 percent in the first quarter of 2010, (that is, from the fourth quarter to the first quarter), according to the "third" estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2009, real GDP increased 5.6 percent.

The deceleration in real GDP in the first quarter primarily reflected decelerations in private inventory investment and in exports, a downturn in residential fixed investment, a deceleration in nonresidential fixed investment, and a larger decrease in state and local government spending that were partly offset by an acceleration in PCE.

Real personal consumption expenditures increased 3.0 percent in the first quarter, compared with an increase of 1.6 percent in the fourth. Real nonresidential fixed investment increased 2.2 percent, compared with an increase of 5.3 percent. Nonresidential structures decreased 15.5 percent, compared with a decrease of 18.0 percent. Equipment and software increased 11.4 percent, compared with an increase of 19.0 percent. Real residential fixed investment decreased 10.3 percent, in contrast to an increase of 3.8 percent.

It takes the government 3 swings to calculate GDP and the 3rd revision figure of 2.7% is down significantly from their initial guess of 3.2%.

The U.S. government spent trillions in stimulus, placed a huge debt burden on our grandchildren and the economy barely grew. The stock market "experts" paraded around CNBC day after day will now be forced to reduce their lofty earnings estimates for the 2nd half of 2010 and full year 2011.

Consumer spending fell to 3% from 3.5% earlier, business investment was revised down to 2.2% from 3.1% previously. Q1 GDP of 2.7% is less than 1/2 Q4 2009 GDP of 5.6%.