31 May 2012, The U.S. Department of Commerce reported that the U.S. GDP continues to stagnate at 1.9%!  That was for January through March.

Once again, the experts were expecting it to be higher, like around 2.2% (which is still stagnation).  The problem is that the experts were expecting business inventories to be around $69.5 billion USD, instead they ended the 1st quarter at $57.7 billion.

Also, consumer spending was a tiny bit lower than what the experts were expecting; 2.7% instead of the expected 2.9%.

Government spending dropped by 3.9%, also more than what the experts were expecting.

Inflation went up 2.4% (price index for personal consumption), which is twice that of the 1st quarter of 2011!  By the way, the experts got this one right.

The inflation rate for core PCE gauge, which excludes volatile food and energy prices, was at 2.1%, which is up from the 4th quarter of 2011.

But wait, there’s more!  The Commerce Department said the 1st quarter GDP could have been even lower if it weren’t for an unexpected increase in business spending! Business spending went up 1.9%, the experts were expecting it to drop by 2.1%!

By the way, one of the BRICS countries, India, reported an explosive GDP growth rate of 5.3%, during the same time period, and keep in mind that’s a decline from the previous year!