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Consumer spending becomes a key driver of growth (May 07)

The slightly disappointing GDP data for the first quarter still mark a good start for the year. In particular, the household sector made another large positive contribution. Investment was the soft spot: high levels of capacity utilisation suggest that capital spending will rebound in Q2, but weakness in new orders needs watching. The latest monthly data also suggest that the jury is still out on whether the recent strength of consumer spending will be sustained.

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