US: GDP - Building a Base for Recovery

Economic fundamentals support the case for recovery as a massive drawdown in inventories will reverse and federal government spending will be supportive. Inflation is still low. Our outlook remains for 2nd half gains. Growth fundamentals suggest continued improvement toward the recovery. Overall growth was negative in the second quarter but the drop was far less than in the first quarter. Moreover, final sales are less negative and inventories were less of a drag on growth. Private consumption