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U.S. Economy Contracts in First-Quarter on Inventories, Trade (Revised to minus one percent)
Reuters ^ | Thursday, May 29, 2014 | Lucia Mutikani

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 ...


TOPICS: Breaking News; Business/Economy; News/Current Events
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To: kristinn
Not to worry. ZERO will fix it.
Wait.
Worry. . . . . . .
21 posted on 05/29/2014 6:19:30 AM PDT by DeaconRed (Deodorant and Common sense. The ones who need it most don't use it. . . . .)
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To: blam
Chart, shmart.

Just need a few more tons of green ink, and fresh paper, zero and the feds will have this puppy humming along in no time.

Better lock up the wheel barrows, they are going to become valuable.

22 posted on 05/29/2014 6:25:36 AM PDT by going hot (Happiness is a momma deuce)
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To: kristinn

It’s the regulatory snowstorm from the Executive Branch.

When do we cut off that infected limb?


23 posted on 05/29/2014 6:26:38 AM PDT by 1010RD (First, Do No Harm)
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To: Cringing Negativism Network

Toothpicks? Shoes? What kind of manufacturing? Be specific.


24 posted on 05/29/2014 6:27:09 AM PDT by 1010RD (First, Do No Harm)
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To: Madame Dufarge

It is not unusual for the government to make sharp revisions to GDP numbers

************
Revisions = sleight of hand to dress up the numbers. This article ties in with your comments; it exposes our descent into national financial ledgerdemain.

http://www.zerohedge.com/news/2014-05-29/our-make-it-look-good-economy-has-failed

“The essence of the U.S. economy is make it look good: never mind quality or long-term consequences, just make it look good today, this week, this month, this quarter: make the pink slime look like meat, make the company look profitable, make the low-quality product look good enough to close the sale, make the unemployment rate low enough to justify re-electing the toadies currently in power, make the body count of bad guys look good, and on and on—just makes the numbers look good now, the future will take care of itself.”


25 posted on 05/29/2014 6:27:14 AM PDT by Starboard
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To: 1rudeboy

The White House will get on this now since they read about it in the news. They will investigate to find out what happened. In about 2017 they will know why these numbers went negative. They will ignore their findings.


26 posted on 05/29/2014 6:28:37 AM PDT by taterjay
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To: Truth29

Good post. You nailed it.


27 posted on 05/29/2014 6:29:29 AM PDT by Starboard
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To: kristinn

Don’t worry, be happy...the stock market, pre market on this news, is up today. Perhaps due to a finite number of stocks being chased by an infinite number of dollars??


28 posted on 05/29/2014 6:29:36 AM PDT by Mouton (The insurrection laws perpetuate what we have for a government now.)
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To: AU72
2 down quarters in a row is a recession.

That could be awkward if they go into a second recession "unexpectedly" and just before the election without anyone feeling like we left the first recession. Eventually people might wonder whether big government liberalism, higher taxes, more regulation, less reward for success and a bigger safety net for failure, topped by ObamaCare's mandates for employers and subsidies for those who don't work might be part of the problem instead of the solution.

29 posted on 05/29/2014 6:30:12 AM PDT by Pollster1 ("Shall not be infringed" is unambiguous.)
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To: KosmicKitty
Unexpected?? Actually, this is not unexpected. Many were predicting that the revision would bring negative growth. IMHO, the contraction in Q1 is really the over inventory build-up in Q4 that did not play out in the Christmas season.

Here is the history of Q4 GDP releases..

Advanced report Jan-14: Q4 GDP at 3.2%
Interim Report Feb-14: GDP at 2.4%
Final Report Mar-14: Q4 at 2.6%

30 posted on 05/29/2014 6:31:21 AM PDT by 11th Commandment ("THOSE WHO TIRE LOSE")
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To: taterjay

In the meantime, no questions will be addressed by the White Hut because of the “ongoing investigation”.


31 posted on 05/29/2014 6:32:01 AM PDT by Starboard
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Comment #32 Removed by Moderator

To: kristinn

33 posted on 05/29/2014 6:32:45 AM PDT by Wyatt's Torch
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To: kristinn

I would not be shocked if Obamacare had something to do with it.


34 posted on 05/29/2014 6:33:17 AM PDT by PghBaldy (12/14 - 930am -rampage begins... 12/15 - 1030am - Obama's advance team scouts photo-op locations.)
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To: Tallguy

GDP growth in 2Q14 will be >2%


35 posted on 05/29/2014 6:33:56 AM PDT by Wyatt's Torch
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To: Truth29

HD co-founder Ken Langone said on CNBC this morning that “slow economic growth is the price we pay for this insanity of regulation on businesses.”


36 posted on 05/29/2014 6:35:20 AM PDT by Wyatt's Torch
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To: Wyatt's Torch

America’s debt is 17.5 trillion, and that is (rapidly) growing.

Just saying.


37 posted on 05/29/2014 6:35:54 AM PDT by Cringing Negativism Network (http://www.census.gov/foreign-trade/balance/c5700.html#2013)
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To: PghBaldy

Obamacare was actually a positive impact in the quarter. Seriously. That’s how it was counted.


38 posted on 05/29/2014 6:36:11 AM PDT by Wyatt's Torch
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To: Cringing Negativism Network

Okay... Now what?


39 posted on 05/29/2014 6:36:45 AM PDT by Wyatt's Torch
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To: 1010RD
Toothpicks? Shoes? What kind of manufacturing? Be specific.

Everything people use everyday. Making things people use everyday is the only way to create real wealth.

40 posted on 05/29/2014 6:37:47 AM PDT by Count of Monte Fisto (The foundation of modern society is the denial of reality.)
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