Top Links: You can thank austerity and sequestration (in part) for today’s mixed bag of a GDP report

Top story: The economy is growing more this quarter than last. But don’t start celebrating just yet.

Here’s the good news:

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• GDP – the “stuff” in goods and services this country produces – in the first three months of the year was up 2.5%. That’s a reasonable (though not great) rate of growth.” (Justin Wolfers)

• “It still marks a reasonably healthy growth rate, especially compared to the end of 2012.” (Real Time Economics)

• And what led that growth? Personal consumption, up 3.2%, “which is pretty solid.” (Neil Irwin)

• “Housing continues to be a bright spot as residential investment was up almost 13% on an annual basis.” (Jared Bernstein)

• True, today’s GDP number “may not be any great shakes but it looks pretty good compared to the rest of the developed world.” (Abnormal Returns)

Here’s the bad news:

• While consumers look interested in spending more, businesses don’t (Justin Wolfers)

• Another big culprit was austerity, as government spending – including a big dropoff in defense spending – was a big drag on the bottom line.(Neil Irwin)

• “We’re muddling along at basically the same pace we have for nearly four straight years of this godawful recovery.” (Wonkblog)

• Thanks to sequestration, “the public sector is poised to further drag on growth in the quarters ahead.” (Real Time Economics)