Skip to comments.U.S. Economy Contracts in First-Quarter on Inventories, Trade (Revised to minus one percent)
Posted on 05/29/2014 5:45:43 AM PDT by kristinn
The U.S. economy contracted in the first quarter for the first time in three years as it buckled under the weight of a severe winter, but there are signs activity has since rebounded.
The Commerce Department on Thursday revised down its growth estimate to show gross domestic product shrinking at a 1.0 annual rate.
It was the worst performance since the first quarter of 2011 and reflected a far slower pace of inventory accumulation and a bigger than previously estimated trade deficit.
The government had previously estimated GDP growth expanding at a 0.1 percent rate. It is not unusual for the government to make sharp revisions to GDP numbers as it does not have complete data when it makes its initial estimates.
The decline in output, which also reflected a plunge in business spending on nonresidential structures, was sharper than Wall Street's expectations. Economists had expected the revision to show GDP contracting at a 0.5 percent rate.
(Excerpt) Read more at reuters.com ...
Here’s an idea:
Bring back American manufacturing.
Have you contacted the White House? They can use all the help they can get.
Still blaming a cold winter for a failed economy. Next will be a dry/wet Spring, then a hot summer.
Even dems are not concerned.
Everyone is sleeping.
(I know you were joking, but I’m not)
America needs jobs, and nobody is on our side. Nobody.
Just speculating here, but maybe — just maybe — this has something to do with the fact that some of the Obamacare mandates and taxes kicked in earlier this year and late last year. Nah, that can’t be it. Obamacare saved us money and was positive for the economy.
Good morning.....off topic question..but do you know if any/all of the Republican Leadership conference ( which starts today) is being broadcast or streamed on-line? I’ve been looking..can’t find any info or links...thanks
Heading into yet another “Summer of recovery”.
2 down quarters in a row is a recession. Maybe they can get the VA to do GNP calc for the 2nd quarter.
It was caused by the ( snow, rain, heat, drought, meteorites, Bush’s fault......).
When will they admit the economy is completely in the dumps?
The debt is now 17.5 trillion. You sure never hear about that.
It’s a racist economy anyway....
Since our economy is consumption based, the increase in premiums have definitely cut into discretionary spending.
Would that the government could contract in a fashion as the economy.
In times of plenty the useless and lazy can be supported by the producers, when times get bad, producers balk and the useless and lazy are in peril.
We are living in perilous times.
'Sides, they just need a little bit more money, to really get this show going.
Oh, but o-care is a good thing. It caused a BRISK pace of spending.
“””Spending was boosted by the Affordable Healthcare Act, which expanded healthcare coverage to many Americans. Consumer spending had increased at a brisk 3.3 percent pace in the fourth quarter.”””
Yes, let's put our trust in the "data," because:
It is not unusual for the government to make sharp revisions to GDP numbers as it does not have complete data when it makes its initial estimates.
Al Reuters labors mightily to find a smiley face. Maybe Paul Krugman can give them some pointers.
“2 down quarters in a row is a recession.”
Yes, but it will be Bush’s fault.
Spot on the chart below just how high the culmination of over $1 trillion in QE3 proceeds "pushed" the US economy.
Heard on the radio this morning that some ‘experts’ are expecting the GDP to contract in the current quarter. If, as I expect, they revise the weak 1st Quarter GDP downward — bammo, there’s your ‘official’ recession.
But then most of the economy has remained in the Tank since before the community-agitator mouthed the Oath of Office.
Could it be that the economy buckled under the endless onslaught of the US government against US businesses, the weight of thousands of punitive regulations, the war on US energy sources and companies, etc?
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