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"The impact from supply chain disruptions following the Japan earthquake was evident in April's wholesale inventories report. Total wholesale inventories rose a less-than-expected 0.8% (BarCap and consensus: 1.0%) with auto inventories down 1.3%. Auto sales and inventory accumulation are likely to be a negative for Q2 GDP growth but should be partly offset by weaker imports." They still see Q2 real growth 'close to' +2% - but with less trade drag and more inventory drag.
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