Skip to comments.U.S. economy shrinks 1% in first quarter
Posted on 05/29/2014 11:40:03 AM PDT by Mikey_1962
■China's economic shift set to throw the West off-balance ■China passes U.S. to become world's largest trader ■U.S. economy ekes out 0.1 per cent GDP growth
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.
I wonder if you will hear even a peep of this on the evening news??
“Unexpected. . . .”
but it’s a recovery
The bad economy Obama “inherited” and made worse will be over the moment he’s over. Go, Cruz, GO!!
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.
Damn Bush must have messed it up real good. Sac.
Recovery Summer version 6.0.......................
“...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.
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.
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.
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...
Commie rats are chuckling on their way to the bank. They are making money, but the rest of America is losing out.