Remember the drastic economic slowdown the US had in the first quarter? It was not as bad as previously thought.
The third (and final) estimate of first-quarter GDP growth is in from the Bureau of Economic Analysis, and they offer a far less gloomy view of the US economy. Here’s a how much things have shifted between the three estimates:
Here’s what growth looks like now:
A particularly bright spot in the revisions was in private investment, especially residential investment.
That goes a long way towards the view that housing was just getting held down by the winter and is about to bounce back. Just yesterday, new home sales reached a seven-year high, realtor data shows first-time homebuyers began trickling back into the market, and homebuilder Lennar reported stellar earnings that handily beat expectations. The new GDP numbers doesn’t necessarily make the current recovery any less stop-and-start (paywall), but they’re surely a welcome relief.