The U.S.' gross domestic product (GDP) grew by 4.8% in the first three months of this year, more than the preliminary estimate of 4.2% made last month, reports the Commerce Dept.'s Bureau of Economic Analysis. But the brisker-than-expected growth might point to a slowdown in growth in the coming months.
"In the first quarter we saw a massive front-loading of consumer demand and construction caused in part by unusually warm weather," observes National Assn. of Manufacturers President Jerry Jasinowski. "Consumer spending also was strong because of the rapid wealth gains from the stock market. The other surprise in these numbers is the upward revision in inventories, which added 1.4 percentage points to GDP. "None of these gains, however, are sustainable at their current pace."