Here's How Economists Will Poo-Poo On A Good GDP Report

Economists are looking for a 3.0% growth rate.

But High Frequency Economics' Jim O'Sullivan notes that this headline number won't necessarily be met with cheers.

From his note:

A solid rise in GDP in today’s Q1 report is likely to be downplayed, with some of the strength due to inventory building rather than final sales. Also, the monthly data for March suggest a sharp slowing as the quarter ended. We agree that the Q1 pace should not be ex- trapolated, and that Q2 growth is likely to be more modest, although we are also increasingly confident that the sudden slowing in March was mainly just payback for exaggerated strength earlier.

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