Since we know that the Fed has pumped out multiple trillions in the last couple of years, and the the national on-budget debt has increased by around 5 trillion, any recovery that might be reflected in the numbers must be a result of profligate government spending. The fact that, with interest rates so low, and government spending at cosmic levels, the recovery is so weak is truly an ominous sign, particularly when coupled with the Euro crisis.
Yes. Government expansion Government connected expansion.
Expansion in oil/gasoline prices and essentials.