There is some good and some bad in this report.
The good, that consumer spending is up 3.6% which means people no longer think the world is coming to an end, of course this can be reversed very quickly due to things like Obamacare passing and the European debt crisis.
The bad, and the real takeaway from this report is that when you subtract out inventories, GDP grew at 1.7% in the fourth quarter and at 1.6% in the first quarter. Since the inventory build is almost certain to slow down, we will need to see a major increase in consumer spending or in construction in order to see numbers 3% plus going forward this year, neither of which seems likely.
The fundamental problem with every rosy forecast going forward is "Why?" What has happened to "turn the economy around"? What exactly has been done to encourage growth? What reason is there for the private sector to become optimistic?
The only answer the administration and its economic sycophants seem to have is "Because..."