The upward revision reflected a lower trade deficit and increased spending by households on utilities. Even with the upward revision, analysts are not encouraged by the growth rate. There’s no underlying momentum, yet the weakness that was evident in the late spring is also not being sustained.
 
The revision also reflected the largest increase in spending on services since the fourth quarter of 2006. But consumers’ purchasing power weakened a bit as disposable income was adjusted for inflation.
 
Weaker global economic growth still did not affect foreign demand for US goods. The fact is that the US expansion is now in its fourth year, contrasting sharply with the state of Europe’s economy. With the housing market and business inventories picking up, growth may not be as quick as some analysts hope but it is still growth.

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