The biggest quarter to quarter decline in GDP growth since the late 1950’s but there is some good news in the latest numbers.  Consumer spending was up 2.2% almost 2X expected which indicates that with the current low inventory numbers future growth is just around the corner.   Stock piles otherwise known as business inventories were down $103.7B in the 1^st quarter this year vs. just $26 B in the 4^th quarter of 2008 indicating what a huge cut in inventories we are currently seeing.  Businesses have cut their inventory levels as much as they possibly can. 

Business investment is still weak because businesses still do not know how long this recession is going to last.  Residential investment and housing starts are nearly flat.   Future GDP numbers are expected to be much better in the coming quarters according to Christina Romer, Chair of the White House Council of Economic Advisers.  “We are optimistic for positive growth in the 4^th quarter GDP growth”