My Stock Market Journal: US Q1 GDP revised down to

Economic activity in the Q1 2009 contracted by less than previously expected. GDP fell –5.5% in Q1 vs. a –5.7% expected decline
None the less, this was a large improvement compared to the Q4 2008 GDP of –6.3%

“slightly less bad first quarter sets the stage for an even smaller drop in the second quarter and a trough in the third quarter.” – Nariman behravesh (Chief economist at IGH global insight)

Behravesh expected economic activity to contract by –2.5% to –3.0% in Q2 followed by a more less flat performance in Q3 and around a +1% growth in Q4 2009
This smaller downward revision reflected an upward revision to inventory investment and a downward revision to imports.
Report also showed a downward revision to the pace of consumer spending growth, which was revised to show an increase of 1.4% compared to the previously reported 1.5% increase.
Positive contributions were partly offset by larger decreases in private inventory investment and in spending on non-residential structures.
Fed also said conditions in financial markets have generally improved and housing spending has shown further signs of stability.
EOCD predicted this week the US downturn will bottom out this year and be followed by a soft recovery in 2010.
Weak job markets and falling home prices as mentioned above are expected to dampen consumer spending for some time.
Exports dropped –30.6% in Q1 instead of –28.7% a months ago.
Imports dropped at 36.4%, the steepest since 1947.

Drop in exports cut 4.16% points from GDP.

Corporate porfits grew at a +1.4% rate during Q1 slightly better than the expected 1.1% estimated a month ago after falling 10.7% in the final 3 months of last year.