The US government’s “cash for clunkers” program has been a huge success in drawing traffic into showrooms but it looks as though the government funds have already run out. With US auto inventories low, the factories may have to crank up again, which should add to GDP in coming quarters.
Q2 GDP is a wild card, some see growth returning as early as Q2 while others see inventory draw-downs postponing the rebound to Q3 and beyond.
