GDP for 4Q2011 was revised upward to +2.98%.
This is second of three readings, first reading was 2.8%.
The Problem is that almost two-thirds (1.88% of the 2.98%) was in wholesale inventory growth, and that will be given back if consumer spending does not keep pace.
It’s also worth re-stating that real (inflation-adjusted) GDP increased 1.7% for all of 2011 after increasing 3% in 2010. The slowdown was mostly from decreasing inventory investment and government spending. The government spending slide was the largest annual decline since 1971.
Here’s annual GDP for the past 4 years.
And here is today’s other data…
MBA Mortgage Applications
-Composite Index, Week/Week -0.3%
-Purchase Index, Week/Week +8.2%
-Refinance Index, Week/Week -2.2%
-Purchases may have been bumped by the 3-day Presidents Day weekend.
Chicago PMI (February 2012)
-This is another measure of wholesale activity.
-Business Barometer Index Level 64.0. Previous was 60.2