Spurred in part by Cash for Clunkers, the consumer went shopping
again. Personal consumption increase was 67% of the jump in the
GDP number announced this morning (42% came from durable goods).
Some other areas showed improvements as well. Residential
construction was up 23%, driven to some extent by the first-time
home buyers tax incentive. It contributed another 0.53% to the
GDP increase. There are clear fingerprints of government support
in these GDP numbers. When the support programs are withdrawn
and taxes (state and federal) increase, it's questionable
whether this rate is sustainable going forward.