Skip to comments.U.S. Economy Shrinks By Most Since Great Recession in 1Q (-2.9%)
Posted on 06/25/2014 5:47:58 AM PDT by kristinn
The U.S. economy contracted at a much steeper pace than previously estimated in the first quarter, but there are indications that growth has since rebounded strongly.
The Commerce Department said on Wednesday gross domestic product fell at a 2.9 percent annual rate, the economy's worst performance in five years, instead of the 1.0 percent pace it had reported last month.
While the economy's woes have been largely blamed on an unusually cold winter, the magnitude of the revisions suggest other factors at play beyond the weather. Growth has now been revised down by a total of 3.0 percentage points since the government's first estimate was published in April, which had the economy expanding at a 0.1 percent rate.
The difference between the second and third estimates was the largest on records going back to 1976, the Commerce Department said.
Economists had expected growth to be revised to show it contracting at a 1.7 percent rate. Sharp revisions to GDP numbers are not unusual as the government does not have complete data when it makes its initial and preliminary estimates.
(Excerpt) Read more at foxbusiness.com ...
That’s a huge decline.
Leftism, by any of its’ brand names, always fails economically, culturally and morally.
Only an intellectual idiot would continue to believe in leftism’s hoax and lies.
Kinda like believing in human caused globull warming.
Not seeing this too much in the legacy media.
And...they're trying to manage the bad news: put out a bad number and let the news die down, then later massively revise it down and that revision gets less news coverage.
It’s still Bush’s fault!!!
Is it Recovery Summer yet?
Indications are everywhere...shrinking work force, inflation through the roof, falling wages, downward mobility.
You can't go too far wrong with more of the same.
With Democrats one always must expect the unexpected.
Green shots are right around the corner comrades! I’m sick of hearing that for the last 6 years.
Odungacare is a big factor IMO.
America we are handing the future to China.
We need to work. Here.
Bring back American production.
When hamburger costs $5/lb. and every item has been downsized so that “a pound” of coffee is now 11 oz., most people are having trouble just surviving in this horrible economy.
And...they’re trying to manage the bad news: put out a bad number and let the news die down, then later massively revise it down and that revision gets less news coverage. “
This has been happening month after month for the last five years with the unemployment figures.
At this point, it is probably preferable for the whole thing to burn.
OK, we lied to you about the last quarter’s results, but you can absolutely trust our projections for the next quarter, honest!
you print paper money....and it loses value.
taxation by inflation.
Congress needs to request emails between Commerce and the White Hut before the hard drive crashed.
“There are indications that growth has rebounded sharply”
Yeahhhh that’s the ticket.
Just noise ... weather related noise
Housing has been selling like hotcakes. There’s a puzzling disconnect with the economic growth number.
Yeah, so they release a modified -2.9% so what’s it really? -5%?
Not if one believes in cause and effect...
It was in this revision contributed -1.3%
The economy is coming back, it’s just very uneven and erratic. Every retailer I talk to says it’s like a wave, up and then down and then up and then down, but better.
I regularly see retailers from KFC to HHGreg with handmade signs and employees standing with them on roadside announcing some daily special. That’s scary.
On the upside, whichever party wins the presidency is in for a boom time. If it’s a Democrat or GOPe it will be muted, but if it is a real conservative, it will be a long and wonderful boom. All you need to do is hold the budget to zero increase, lower cap gains taxes back to 10% or zero it out, get corporate taxes down to below 20% (again zero is the correct number, but libs will go nuts), and end all the red tape that’s burdening energy and business formation. That can be done with a GOP House, Senate and conservative POTUS.
Once the economy booms...
Yeah. That's it, "the weather".
And it that excuse fails, we can always blame foreign spies, Kulaks, capitalist wreckers, and Hooligans...
No, they’re trying to manage the economy with Coke bottle glasses and a Martini.
The revisions are scheduled far ahead of time. So you have it for your calendar:
Q2 1st estimate will be July 30th
Q2 2nd estimate will be August 28th
Q2 3rd estimate will be September 26th
That and +600K job growth during the quarter. That is completely incongruent with a GDP number like this.
That quarter saw decreased sales, consumer spending, and contracting supplies while at it was higher government spending at the same time.
So, the government took more away from an economy that was generating less.
Is it any wonder they blame the weather? If I remember my history, the more an economy gets taxed, the less business it generates. They were bragging a few weeks ago about record setting tax receipts.
As a single person household, my typical weekly grocery bill ran about $28 three years ago. Last year it was around $40. More recently, it has been around $60.
Many food item prices have jumped 25% or more, and many of those have also been the afflicted with product shrinkage.
I’m still bitter about the 39 Oz. cans of Maxwell House coffee being reduced to 28 Oz. plastic jars.
I’m stocking up on their 100% Columbian due to S. American coffee fungus and other stuff. The 28 Oz. jars were $6.78 at WM last weekend. I like to have a 6 month supply to wait out the spikes.
Agree with that completely. Ditto for all the other regulations and tax laws. It is the most anti-business environment in American history.
So let’s see. Any bets on how this gets blamed on Bush?
Sheesh you’ld have thunk with everyone saving 2,500 dollars on their new government imposed healthcare the economy would have gone crazy with all the personal expendable income
Even the left should wake up, one day, maybe. Have to believe most of the left is going on skin color alone to support the one doing the most damage. The left is certainly not listening to Martin Luther King Jr.
That's just not accurate.
That's not exactly true. There are two economies. The elite....globalists and those who are part of their manipulation of the masses have never been better off. Public employees with just an ounce of sense of budgeting are well off and secure. There will always be those who have necessary skills and will thrive.
It's the other 75% or so of the population that's hurting. The gap is getting worse. It feels like the rest of us are a cash crop for the elite, given no more money than we'll spend, with the elite profiting every time the bottom 75% spend their limited resources.
The best way to turn the tide would be local spending, manufacturing, and small business/individual commerce.
Houses > $1M are selling.....the lower market has been declining.
That is what I fear! Green “shots” around the corner.
Well, is the housing selling for what it was supposedly worth a few years back and are the jobs worth a bucket of warm spit?
Thats a huge UNEXPECTED decline...........................
“It was in this revision contributed -1.3%”
What until the vast majority of folks with Health Ins through their employer get hit with the bill this fall. 1st qtr. 2015 should be a doozy