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U.S. economy shrinks 1% in first quarter
CBC ^ | 5-29-14 | Staff

Posted on 05/29/2014 11:40:03 AM PDT by Mikey_1962

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The U.S. economy was battered even more than first suspected by the harsh winter, actually shrinking from January through March. The result marked the first retreat in three years, but economists are confident the downturn was temporary.

Gross domestic product contracted at an annual rate of 1 percent in the first quarter, the Commerce Department said Thursday. That was worse than the government's initial estimate last month that GDP during the period grew by a slight 0.1 percent. The economy last posted a decline in the first three months of 2011 when it dropped 1.3 percent.

This year's weakening reflected slower stockpiling by businesses, a cutback in business investment and a wider trade deficit. Economists expect a robust rebound in the April-June quarter as the country shakes off the effects of a severe winter.

Dan Greenhaus, chief strategist at BTIG, called the drop in growth "backward looking."

"We knew that weather dramatically impacted growth in the first quarter, and we fully expect a bounce back in the second quarter," he said in a note to clients.

Indeed, there are a number of recent signs pointing toward a strengthening economy. The government released a separate report Thursday that showed applications for unemployment benefits, a proxy for layoffs, fell by 27,000 last week to 300,000. The result is nearly a seven-year low.

Ian Shepherdson, chief economist at Pantheon Macroeconomics, said that the big drop in unemployment benefit applications was more significant than the latest GDP figure because "it strongly support the idea that the labor market conditions are improving markedly, despite the weak headline growth during the winter."

The report Thursday was the government's second look at first quarter GDP, the country's total output of goods and services.


TOPICS: Business/Economy
KEYWORDS:
Obamanomics in action.
1 posted on 05/29/2014 11:40:03 AM PDT by Mikey_1962
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To: Mikey_1962

I wonder if you will hear even a peep of this on the evening news??


2 posted on 05/29/2014 11:43:55 AM PDT by PGR88
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To: Mikey_1962

“Unexpected. . . .”


3 posted on 05/29/2014 11:44:14 AM PDT by Salgak (http://catalogoftehburningstoopid.blogspot.com 100% all-natural snark !)
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To: Mikey_1962

Totally unexpected.


4 posted on 05/29/2014 11:45:00 AM PDT by Jim Robinson (Resistance to tyrants is obedience to God!!)
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To: Mikey_1962

but it’s a recovery


5 posted on 05/29/2014 11:45:39 AM PDT by equalator
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To: Mikey_1962

The bad economy Obama “inherited” and made worse will be over the moment he’s over. Go, Cruz, GO!!


6 posted on 05/29/2014 11:47:06 AM PDT by Jim Robinson (Resistance to tyrants is obedience to God!!)
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To: PGR88

The only way you will hear of it is the tremendous recovery we expect from the remarkably cold winter that caused the economy to contract which was entirely due to the global warming epidemic.


7 posted on 05/29/2014 11:48:30 AM PDT by laconic
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To: Jim Robinson

Damn Bush must have messed it up real good. Sac.


8 posted on 05/29/2014 11:49:04 AM PDT by jimpick
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To: Mikey_1962
This is a slow "grind to a halt" - they will not be able to reverse it in time no matter who gets control of the White House in 2016.
Take a close look at your preps - we've got about 18 months left to fine-tune them.
9 posted on 05/29/2014 11:51:48 AM PDT by Psalm 73 ("Gentlemen, you can't fight in here - this is the War Room".)
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To: Jim Robinson

Recovery Summer version 6.0.......................


10 posted on 05/29/2014 11:52:05 AM PDT by Red Badger (Soon there will be another American Civil War. Will make the first one seem like a Tea Party........)
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To: Mikey_1962

11 posted on 05/29/2014 11:52:53 AM PDT by 2ndDivisionVet (I will raise $2Million USD for Cruz and/or Palin's next run, what will you do?)
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To: Mikey_1962

Obunganomics....


12 posted on 05/29/2014 11:54:04 AM PDT by varmintman (It must really suck to be a Nazi in Kiev these days...)
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To: Mikey_1962

“...first retreat in three years, but economists are confident the downturn was temporary. “

Are these the same economists who thought 4 or 5 percent unemployment during Bush was “The worst economy since Hoover”? Just wondering.


13 posted on 05/29/2014 12:04:59 PM PDT by TalBlack (Evil doesn't have a day job.)
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To: Psalm 73

I’m betting on a crash after the 2014 elections when the repubs make big gains.

The dems will claim the crash is because the repubs took over congress and use the repubs own words from the 2007/8 crash against them.

Everyone has pointed out the economy went in the tank when the dems took over in 2007, expect the dems to use that to their advantage.


14 posted on 05/29/2014 12:05:56 PM PDT by IMR 4350
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To: Mikey_1962

Despite the 1% drop, the stock market is near record highs. Usually market drops precede economic turndowns.
I wonder what the summer will look like.


15 posted on 05/29/2014 12:06:28 PM PDT by grumpygresh (Democrats delenda est. New US economy: Fascism on top, Socialism on the bottom.)
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To: Mikey_1962
"Mmmm...mmmm...mmmm!

Barack Hussein Obama!"

16 posted on 05/29/2014 12:12:12 PM PDT by Paine in the Neck (Socialism consumes EVERYTHING)
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5% Carry 100% of Free Republic Expense


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Support FR

17 posted on 05/29/2014 12:15:35 PM PDT by DJ MacWoW (The Fed Gov is not one ring to rule them all)
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To: Mikey_1962
Such growth as to dazzle your retinas, the growth we're having under Barack Hussein Obama. Such growth!

18 posted on 05/29/2014 12:21:03 PM PDT by Dahoser (Separation of church and state? No, we need separation of media and state.)
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To: PGR88

I haven’t watched the big 3 in literally decades.

I can’t imagine though what they could possibly have left to report, after downplaying and outright censoring the failures of Zero, they would still have 25 of the 30 minutes to fill every night I imagine.

Well I guess I might be overlooking the shooting in LA. What with “experts” to consult and “analysis of current law” to report, that could fill 25 minutes easy. Whew, thank GOD for that shooting!

ER, I mean what a tragedy yeah...in every sense of the word “tragedy” too yep, no personal responsibility there...


19 posted on 05/29/2014 12:42:39 PM PDT by FourtySeven (47)
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To: Mikey_1962

Commie rats are chuckling on their way to the bank. They are making money, but the rest of America is losing out.


20 posted on 05/29/2014 1:11:42 PM PDT by vpintheak (I will not comply!)
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To: TalBlack

There’s already a Business Insider or Newsweek article on how this contraction is good.


21 posted on 05/29/2014 1:19:35 PM PDT by tbw2
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To: Mikey_1962

If tractor production is up. Then how can this be?
Is obama and the democrat party lying to all of us?
Am I not to trust the news media?


22 posted on 05/29/2014 3:49:58 PM PDT by minnesota_bound
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To: Mikey_1962

The headline is false, then. The economy didn’t shrink 1%. It shrank at an annual rate of 1%.


23 posted on 05/29/2014 4:20:48 PM PDT by Arthur McGowan
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To: Psalm 73

I don’t believe Obama will just sit out his term. He will “pull the plug” on the U.S. in some manner. The illegal alien Muslim terrorist was not sent here and put in the White House just to put the U.S. through eight years of depression. He was put there to bring it to an end.

The day after the election in 2014 is the first day of the most dangerous two years in American history, and probably the last two years of American history.

The U.S. Government ceased to be legitimate, at the latest, on January 22, 1973—coincidentally the day that Lyndon Johnson, who murdered John Kennedy, who stole the 1960 election, died.


24 posted on 05/29/2014 4:26:00 PM PDT by Arthur McGowan
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To: Arthur McGowan
"The day after the election in 2014....probably the last two years of American history."

Agree.

25 posted on 05/30/2014 5:05:34 AM PDT by Psalm 73 ("Gentlemen, you can't fight in here - this is the War Room".)
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