Chances are the Economic Growth for Q1 2007 Will Be Revised Downward . . .
The GDP estimates for Q1 2007 will more than likely be revised downward after a wider trade gap and lower inventories according to Bloomberg.
"The U.S. trade deficit in March jumped 10 percent to $63.9 billion, the widest since September, the Commerce Department reported yesterday. Stockpiles in March unexpectedly fell by the most since July 2005, Commerce reported today."
Economists now forecast first-quarter growth, reported last month at a 1.3 percent annual rate, may actually have been as low as 0.5 percent."
"Still, leaner inventories and stronger demand in March brighten the growth outlook for this quarter, economists said. "
"In its April 27 advance report on gross domestic product the Commerce Department said the trade deficit subtracted 0.52 percentage point from growth in the first quarter, while inventories shaved off another 0.3 percentage point. "